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bond that is sold now at a discount and will pay its lace value at some time in the future when it matur -no interest payme ero coupon bond with a face value of $8000 matures in 19 years. What should the bond be sold for now if its rate of return is to be 2.6% compound ir price to buy the bond at would be $ und to the nearest cent as needed.)

bond that is sold now at a discount and will pay its lace value at some time in the future when it matur -no interest payme ero coupon bond with a face value of $8000 matures in 19 years. What should the bond be sold for now if its rate of return is to be 2.6% compound ir price to buy the bond at would be $ und to the nearest cent as needed.)

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A zero coupon bond is a bond that is sold now at a discount and will pay its face value at some time in the future when it matures-no interest payments are made. A zero coupon bond with a face value of $8000 matures in 19 years. What should the bond be sold for now if its rate of return is to be 2.6% compounded semiannually? A fair price to buy the bond at would be $ (Round to the nearest cent as needed.)
Transcribed Image Text:A zero coupon bond is a bond that is sold now at a discount and will pay its face value at some time in the future when it matures-no interest payments are made. A zero coupon bond with a face value of $8000 matures in 19 years. What should the bond be sold for now if its rate of return is to be 2.6% compounded semiannually? A fair price to buy the bond at would be $ (Round to the nearest cent as needed.)
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