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payment? P4-23. What is the price of a zero-coupon bond that has a par value of $1,000? The bond matures in thirty years and offers a yield to maturity of 4.5%. Calculate the price one year later, when the bond has twenty-nine years left before it matures (assume the yield remains at 4.5%). What is the return that an investor earns if they buy the bond with thirty years remaining and sell it one year later? Qunnonth solls for S781 20

payment? P4-23. What is the price of a zero-coupon bond that has a par value of $1,000? The bond matures in thirty years and offers a yield to maturity of 4.5%. Calculate the price one year later, when the bond has twenty-nine years left before it matures (assume the yield remains at 4.5%). What is the return that an investor earns if they buy the bond with thirty years remaining and sell it one year later? Qunnonth solls for S781 20

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
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P4-23

payment? P4-23. What is the price of a zero-coupon bond that has a par value of $1,000? The bond matures in thirty years and offers a yield to maturity of 4.5%. Calculate the price one year later, when the bond has twenty-nine years left before it matures (assume the yield remains at 4.5%). What is the return that an investor earns if they buy the bond with thirty years remaining and sell it one year later? Qunnonth solls for S781 20
Transcribed Image Text:payment? P4-23. What is the price of a zero-coupon bond that has a par value of $1,000? The bond matures in thirty years and offers a yield to maturity of 4.5%. Calculate the price one year later, when the bond has twenty-nine years left before it matures (assume the yield remains at 4.5%). What is the return that an investor earns if they buy the bond with thirty years remaining and sell it one year later? Qunnonth solls for S781 20
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