Question
The Commonwealth of Kentucky issued a zero-couponbond with aparvalueof$1,000thatmatureson October1,2027.Lets assume it is now October1,2007,theoriginalissue date of this zero-coupon bond. We will also assume the
The Commonwealth of Kentucky issued a zero-couponbond with aparvalueof$1,000thatmatureson October1,2027.Lets assume it is now October1,2007,theoriginalissue date of this zero-coupon bond. We will also assume the original issue of the bond had a yield to maturity of4.3%stated annually. What was the bondsoriginalissueprice?
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To find the bonds original issue price we need to use the present value formula for a z...
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Intermediate Financial Management
Authors: Brigham, Daves
10th Edition
978-1439051764, 1111783659, 9780324594690, 1439051763, 9781111783655, 324594690, 978-1111021573
