A zero-coupon bond has a yield to maturity of 6.33 percent and 12 years until it fully matures. What is the current price of this bond if the face value is $1,000?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
Problem 8P
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A zero- coupon bond has a yield to maturity of 6.33 percent.... Please answer the financial accounting question

A zero-coupon bond has a yield to maturity of
6.33 percent and 12 years until it fully matures.
What is the current price of this bond if the face
value is $1,000?
Transcribed Image Text:A zero-coupon bond has a yield to maturity of 6.33 percent and 12 years until it fully matures. What is the current price of this bond if the face value is $1,000?
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