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Find the price which should be paid for a zero coupon bond that matures for $1000 in 10 years to yield (a) 8%; (b) 7.2%;
Find the price which should be paid for a zero coupon bond that matures for $1000 in 10 years to yield (a) 8%; (b) 7.2%; (c) compare (a) and (b) to see at what percentage the price increases.
1. Find the price which should be paid for a zero coupon bond that matures for $1000 in 10 years to yield (a) 8%; (b) 7.2%; (c) compare (a) and (b) to see at what percentage the price increasesStep by Step Solution
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