Question
One of your friends purchased a zero coupon corporate bond (i.e., a bond that has no interest payments) for $7,800. The bond has a face
One of your friends purchased a zero coupon corporate bond (i.e., a bond that has no interest payments) for $7,800. The bond has a face value of $25,000 and is due in 15 years. If the bond is held to maturity, what rate of return will your friend make on the investment?
options:
| 12.83% | |
| 8.07% | |
| It cannot be determined with the information given. | |
| 220.00% |
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Accounting Information Systems Controls And Processes
Authors: Leslie Turner, Andrea B. Weickgenannt, Mary Kay Copeland
5th Edition
1119989485, 9781119989486
