Marko needs to raise capital through a zero-coupon bond debt offering. If the bonds will have 12 years to maturity and the rate of return on a bond in Marko's risk class is 11 percent, what will be the selling price of the bond? a. $302.50 b. $335.50 c. $269.50 d. none of the above d

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
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**Question 4:**  
Marko needs to raise capital through a zero-coupon bond debt offering. If the bonds will have 12 years to maturity and the rate of return on a bond in Marko's risk class is 11 percent, what will be the selling price of the bond?

**Options:**  
a. $302.50  
b. $335.50  
c. $269.50  
d. none of the above  

**Correct Answer:**  
d. none of the above
Transcribed Image Text:**Question 4:** Marko needs to raise capital through a zero-coupon bond debt offering. If the bonds will have 12 years to maturity and the rate of return on a bond in Marko's risk class is 11 percent, what will be the selling price of the bond? **Options:** a. $302.50 b. $335.50 c. $269.50 d. none of the above **Correct Answer:** d. none of the above
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