What is the market price of a zero-coupon bond (that is, a bond that will not pay any coupon payments) that will mature in 16 years and has the face value of $1,000? Assume the yield to maturity is 3.6%, and that it will compound semiannually. O $565.03 O S612.24 O $567.86 O $653.12
What is the market price of a zero-coupon bond (that is, a bond that will not pay any coupon payments) that will mature in 16 years and has the face value of $1,000? Assume the yield to maturity is 3.6%, and that it will compound semiannually. O $565.03 O S612.24 O $567.86 O $653.12
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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Transcribed Image Text:What is the market price of a zero-coupon bond (that is, a bond that will not pay any coupon
payments) that will mature in 16 years and has the face value of $1,000? Assume the yield to
maturity is 3.6%, and that it will compound semiannually.
O $565.03
O $612.24
O $567.86
O $653.12
Question 15
A bond has $1,000 face value, coupon rate of 6.2%, and yield to maturity (YTM) of 5.2%. It will
mature in 15 years and the interest rate will compound semiannually. What is this bond's current
yield?
O 6.13%
O 5.62%
O 5.38%
O 5.52%
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