Question
Cyberdyne Systems is issuing a series of zero coupon bonds to raise$500M to fund research and development at its Skynet division. Each bond will have
Cyberdyne Systems is issuing a series of zero coupon bonds to raise$500M to fund research and development at its Skynet division. Each bond will have a face value of 1,000and will mature in 26years. The yield on the bond is 2%. What is the fair price for one ofCyberdyne's zero couponbonds?
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Investments
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
10th edition
77861671, 978-0077861674
