What is the price of a zero coupon bond that has a par value of $1,000 The bond matures in thirty years and offers a yield to maturity of 4 5 Calculate the price one year later when the bond has twenty nine years left before it matures (assume the yield remains at 4 5 ) What is the return that inve...

What is the price of a zero-coupon bond that has a par value of $1,000? The bond

Question:

What is the price of a zero-coupon bond that has a of $1,000? The bond matures in thirty years and offers a yield to of 4.5 %. Calculate the price one year later when the bond has twenty-nine years left before it matures (assume the yield remains at 4.5%). What is the return that investors earn if they buy the bond with thirty years remaining and sell it one year later?
Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...