Question
The following is a list of prices for zero-coupon bonds with different maturities and par of $1,000. Maturity(Years) - price 1 - $ 925.16 2
The following is a list of prices for zero-coupon bonds with different maturities and par of $1,000.
Maturity(Years) - price
1 - $ 925.16
2 - $ 862.57
3 - $ 788.66
4 - $ 711.00
What is the price of a 4-year maturity bond with a 10% coupon rate paid annually and par value of $1,000?
Correct answer should be $1039.74.
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New Venture Creation A Framework For Entrepreneurial Start-ups
Authors: Paul Burns
2nd Edition
1352000504, 978-1352000504
