Wesley Company will issue a zero-coupon bond this coming month. The projected yield for the bond is 5%. If the par value of the bond is $1,000, what is the price of the bond using a semiannual convention if: the maturity is 20 years?

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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Wesley Company will issue a zero-coupon bond
this coming month. The projected yield for the
bond is 5%. If the par value of the bond is
$1,000, what is the price of the bond using a
semiannual convention if:
the maturity is 20 years?
Transcribed Image Text:Wesley Company will issue a zero-coupon bond this coming month. The projected yield for the bond is 5%. If the par value of the bond is $1,000, what is the price of the bond using a semiannual convention if: the maturity is 20 years?
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