What is the price of a zero coupon bond with $1,000 face value, 8 years to maturity and an annual yield of 3.7%?O $822.88O $747.77O $813.96O $739.67

Zero coupon bonds are not paid any coupon payments and par value is paid on maturity of bond period.

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What is the price of a zero coupon bond with $1,000 face value, 8 years to maturity O $822.88 $747.77 $813.96 $739.67

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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Question

What is the price of a zero coupon bond with $1,000 face value, 8 years to maturity and an annual yield of 3.7%?
O $822.88
O $747.77
O $813.96
O $739.67

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