Question
Consider a zero coupon bond, that is, a bond that makes no coupon payment. Suppose the face value of the zero coupon bond is $100,
Consider a zero coupon bond, that is, a bond that makes no coupon payment. Suppose the face value of the zero coupon bond is $100, the time-to-maturity is 5 years, and the current annual interest rate is 6%. What is the current price of the bond?
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Investments Analysis and Management
Authors: Charles P. Jones
12th edition
978-1118475904, 1118475909, 1118363299, 978-1118363294
