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A zero-coupon bond has a yield to maturity of 8% and a par value of $1,000. If the bond matures in 11 years, the bond
A zero-coupon bond has a yield to maturity of 8% and a par value of $1,000. If the bond matures in 11 years, the bond should sell for a price of ________ today.
Select one:
A.
$428.88
B.
$525.45
C.
$130.04
D.
$713.29
E.
$614.77
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