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Zero coupon bonds are bonds that pay no coupons. The only payment is the face value at maturity. Consider a 5-year zero coupon bond with

Zero coupon bonds are bonds that pay no coupons. The only payment is the face value at maturity. Consider a 5-year zero coupon bond with a face value of $10,000. If the continuously compounded interest rate is 6%,

how much is the value of the bond (i.e, the PV of the bond)?

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