Calculate the price of a zero-coupon bond with a face value of $2,000 that matures in 8 years if the market interest rate is 7% with semi-annual compounding. (Round the answer to 2 decimal places.) a. $1,124.89 b. $1,089.42 c. $1,056.73 d. $1,145.26

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 9P
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please provide correct answer General accounting question

Calculate the price of a zero-coupon bond with a face
value of $2,000 that matures in 8 years if the market
interest rate is 7% with semi-annual compounding.
(Round the answer to 2 decimal places.)
a. $1,124.89
b. $1,089.42
c. $1,056.73
d. $1,145.26
Transcribed Image Text:Calculate the price of a zero-coupon bond with a face value of $2,000 that matures in 8 years if the market interest rate is 7% with semi-annual compounding. (Round the answer to 2 decimal places.) a. $1,124.89 b. $1,089.42 c. $1,056.73 d. $1,145.26
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