Question
What is the cost of a 50 year zero coupon bond with a current YTM of 5.65% and a face value of $10 million?
What is the cost of a 50 year zero coupon bond with a current YTM of 5.65% and a face value of $10 million? (nearest dollar)
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Step: 1
To calculate the cost of a zerocoupon bond you can use the present value formula which d...Get Instant Access to Expert-Tailored Solutions
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Intermediate Financial Management
Authors: Eugene F Brigham, Phillip R Daves
14th Edition
0357516664, 978-0357516669
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