Question
John wants to buy a twenty-year, AAA-rated, $1,000 par value, with semi-annual compounding, zero-coupon bond being sold by Diversified Industries, Inc. The yield to maturity
John wants to buy a twenty-year, AAA-rated, $1,000 par value, with semi-annual compounding, zero-coupon bond being sold by Diversified Industries, Inc. The yield to maturity on similar bonds is estimated to be 9%. How much would he have to pay for it?
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Financial Markets And Institutions
Authors: Jeff Madura
8th Edition
0324568215, 978-0324568219
