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 $1,000 and will mature in 14 years. The yield on the bond is 6%. How can I calculate the cost for one ofCyberdyne's zero couponbonds for the total amount?
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Finance Applications and Theory
Authors: Marcia Cornett
4th edition
1259691411, 978-1259691416
