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The buyer of a Hokkaido Holistic Health Enterprises bond will receive $1,000 when the bond matures in 11 years, but will receive no cash flows
- The buyer of a Hokkaido Holistic Health Enterprises bond will receive $1,000 when the bond matures in 11 years, but will receive no cash flows prior to then. If the required yield to maturity (based on investors' perception of risk) is 8.7849% annually, what price should someone expect to pay for this "zero-coupon" bond?
- A.$396.05
- B.$96.63
- C.$1,034.83
- D.$145.46
- E.$388.40
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Managerial Accounting
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
12th Edition
978-0073526706, 9780073526706
