Question
A zero coupon bond pays no annual coupon interest payments. When it matures at the end of 10 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 10 years it pays out $1,000. If investors wish to earn 6.5% per year on this bond investment, what is the current price of the bond?
Group of answer choices
$729
$645
$881
$533
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Financial Modeling Using Excel And VBA
Authors: Chandan Sengupta
1st Edition
0471267686, 978-0471267683
