do fast answer of this General accounting question A zero-coupon bond has a par value of $20,000 and willmature in 15 years. If the yield to maturity is 5.2% withsemi-annual compounding, what is the price of the bond?

Step 1: Analysis of the information givenPar value of the bond = $20,000Number of years of maturity…

Answered: A zero-coupon bond has a par value of…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter4: Bond Valuation

Section: Chapter Questions

Problem 4MC

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A zero-coupon bond has a par value of $20,000 and will mature in 15 years. If the yield to maturity is 5.2% with semi-annual compounding, what is the price of the bond?