Question
Patricia Johnson is interested in buying a five-year zero coupon bond with a face value of $1,000. She understands that the market interest rate for
Patricia Johnson is interested in buying a five-year zero coupon bond with a face value of $1,000. She understands that the market interest rate for similar investments is 12.0 percent. Assume annual coupon payments. What is the current value of this bond?
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Financial Informatics An Information Based Approach To Asset Pricing
Authors: Dorje C Brody, Lane Palmer Hughston, Andrea Macrina
1st Edition
9811246483, 978-9811246487
