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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Financial Accounting

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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