Answered: A zero-coupon bond has a yield to…

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?

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 8MC: Suppose a 10-year, 10% semiannual coupon bond with a par value of 1,000 is currently selling for...

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Question

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?

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