Question
An investor purchases a zero coupon bond with 19 years to maturity at a price of $384.58. The bond has a par value of $1,000.
An investor purchases a zero coupon bond with 19 years to maturity at a price of $384.58. The bond has a par value of $1,000. What is the implicit interest for the first year? Assume semiannual compounding.
a.$17.36
b.$19.18
c.$20.33
d.$19.84
e.$18.89
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Finance Applications And Theory
Authors: Marcia Millon Cornett, John R. Nofsinger, Troy Adair
3rd International Edition
1259252221, 9781259252228
