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The prices (per $1000 in face value) of zero-coupon bonds in the U.S. that prevailed on 8/31/09 (at the height of the great recession following the financial crisis in 2008) are shown below. Price Maturity Date 08/31/10 (per $1000 in face value) $996.81 $982.24 $958.01 $927.48 $890.76 $852.27 $813.09 $783.30 $751.84 $716.50 $684.95 YTM 08/31/11 08/31/12 08/31/13 08/31/14 08/31/15 08/31/16 08/31/17 08/31/18 08/31/19 08/31/20

The prices (per $1000 in face value) of zero-coupon bonds in the U.S. that prevailed on 8/31/09 (at the height of the great recession following the financial crisis in 2008) are shown below. Price Maturity Date 08/31/10 (per $1000 in face value) $996.81 $982.24 $958.01 $927.48 $890.76 $852.27 $813.09 $783.30 $751.84 $716.50 $684.95 YTM 08/31/11 08/31/12 08/31/13 08/31/14 08/31/15 08/31/16 08/31/17 08/31/18 08/31/19 08/31/20

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
Problem 1PS
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Problem 4: The prices (per $1000 in face value) of zero-coupon bonds in the U.S. that prevailed on 8/31/09 (at the height of the great recession following the financial crisis in 2008) are shown below. Price Maturity Date 08/31/10 (per $1000 in face value) $996.81 $982.24 $958.01 $927.48 $890.76 $852.27 $813.09 $783.30 $751.84 $716.50 $684.95 YTM 08/31/11 08/31/12 08/31/13 08/31/14 08/31/15 08/31/16 08/31/17 08/31/18 08/31/19 08/31/20
Transcribed Image Text:Problem 4: The prices (per $1000 in face value) of zero-coupon bonds in the U.S. that prevailed on 8/31/09 (at the height of the great recession following the financial crisis in 2008) are shown below. Price Maturity Date 08/31/10 (per $1000 in face value) $996.81 $982.24 $958.01 $927.48 $890.76 $852.27 $813.09 $783.30 $751.84 $716.50 $684.95 YTM 08/31/11 08/31/12 08/31/13 08/31/14 08/31/15 08/31/16 08/31/17 08/31/18 08/31/19 08/31/20
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Zero coupon bonds are issued at a deep discount and redeemed at face value. Therefore, zero coupon bonds will not pay any coupons.

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