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
icon
Related questions
Question

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?
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Intermediate Financial Management (MindTap Course…
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning