Question
A zero coupon bond pays no annual coupon interest payments. When it matures at the end of 9 years it pays out $1,000. If Investors
A zero coupon bond pays no annual coupon interest payments. When it matures at the end of 9 years it pays out $1,000. If Investors wish to earn 4.65% per year on this bond investment, what is the current price of the bond?(Round to the nearest dollar.)
Answer choices:
A. $659
B. $664
C. $661
D. $657
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International Financial Management
Authors: Cheol S. Eun, Bruce G.Resnick
6th Edition
71316973, 978-0071316972, 78034655, 978-0078034657
