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A zero - coupon bond is a bond that is sold now at a discount and will pay its face value at the time when
A zerocoupon bond is a bond that is sold now at a discount and will pay its face value at the time when it matures; no interest payments are made.
How much should a $ face value zerocoupon bond, maturing in years, be sold for now if its rate of return is to be compounded annually?
The bond should be sold for $
Round to the nearest cent as needed.
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