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 $1000 and will mature in 22 years. The yield on the bond is 9%. What is the fair price for one ofCyberdyne's zero couponbonds?
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Finance Applications and Theory
Authors: Marcia Cornett
4th edition
1259691411, 978-1259691416
