Question
A pure discount (or zero-coupon) government bond is issued today that promises to pay $15,000 in 15 years. If the current interest rate on similar
A pure discount (or zero-coupon) government bond is issued today that promises to pay $15,000 in 15 years. If the current interest rate on similar bonds is 7%, what is the price of the bond? Recall that the compounding interval for bonds is 6 months.
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Contemporary Business Mathematics with Canadian Applications
Authors: S. A. Hummelbrunner, Kelly Halliday, K. Suzanne Coombs
10th edition
133052311, 978-0133052312
