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The face value for a zero coupon bond is $100,000, and the zero matures in 30 years. Suppose that the appropriate discount rate is 7%
The face value for a zero coupon bond is $100,000, and the zero matures in 30 years. Suppose that the appropriate discount rate is 7% per year with annual compounding. What is the present value of the bond? Equivalently, what price are we willing to pay for this bond? Do not round at intermediate steps in your calculation. Round your final answer to the nearest dollar.
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