Question
A zero coupon bond which is semiannual compounding has a par value of $1,000. It matures in 20 years and has a required return of
A zero coupon bond which is semiannual compounding has a par value of $1,000. It matures in 20 years and has a required return of 12%. The intrinsic value of the bond today will be _________.
| A. | $97.22 | |
| B. | $104.49 | |
| C. | $364.08 | |
| D. | $732.14 |
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Investments An Introduction
Authors: Herbert B Mayo
10th Edition
0538452099, 9780538452090
