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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

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

years. The yield on the bond is

4%.

What is the fair price for one of Cyberdyne's zero coupon bonds?

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