Question
John is 28 years old and purchased a new issue of zero coupon bonds issued by the company which will pay him the total face
John is 28 years old and purchased a new issue of zero coupon bonds issued by the company which will pay him the total face value of the bonds in the amount of $150,000 when he retires at the age of 65 and the bonds mature at that time. If the YTM on these bonds are 5.85%, how much did he pay today for the bonds ? Assume semiannual compounding periods
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Intermediate Financial Management
Authors: Eugene F Brigham, Phillip R Daves
14th Edition
0357516664, 978-0357516669
