Question
Suppose you purchase a zero coupon bond with a face Value of $1,000, maturing in 20 years, for $213.80. Zero coupon bonds pay the investor
Suppose you purchase a zero coupon bond with a face Value of $1,000, maturing in 20 years, for $213.80. Zero coupon bonds pay the investor the face value on the maturity date. What is the implicit interest in the first year of the bonds life?
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Restructuring And Innovation In Banking
Authors: Claudio Scardovi
1st Edition
331940203X, 978-3319402031
