Question
Jill wants to buy 10-year zero coupon bonds with a face value of $1,000. Her required return on the bonds is 7.1 percent p.a. Assuming
Jill wants to buy 10-year zero coupon bonds with a face value of $1,000. Her required return on the bonds is 7.1 percent p.a. Assuming annual compounding, what would Jill be prepared to pay for the bond? ( to the nearest cent )
a.$503.62
b.$1020.97
c.$762.30
d.$979.31
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Financial Management Principles and Applications
Authors: Sheridan Titman, Arthur J. Keown, John H. Martin
13th edition
134417216, 978-0134417509, 013441750X, 978-0134417219
