Question
An investor purchases a zero coupon bond with 24 years to maturity at a price of $285.95. The bond has a par value of $1,000.
An investor purchases a zero coupon bond with 24 years to maturity at a price of $285.95. The bond has a par value of $1,000. What is the implicit interest for the first year? Assume semiannual compounding.
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Cost Of Capital Applications And Examples
Authors: Shannon P. Pratt, Roger J. Grabowski, Richard A. Brealey
5th Edition
1118555805, 9781118555804
