What is the price per $100 face value of a four-year, zero-coupon, risk-free bond?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
Problem 4MC
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The current​ zero-coupon yield curve for​ risk-free bonds is as​ follows:

 

The current zero-coupon yield curve for risk-free bonds is as follows:
Maturity (years)
1
2
3
4
YTM
5.04%
5.47%
5.79%
5.94%
6.04%
What is the price per $100 face value of a four-year, zero-coupon,
risk-free bond?
Transcribed Image Text:The current zero-coupon yield curve for risk-free bonds is as follows: Maturity (years) 1 2 3 4 YTM 5.04% 5.47% 5.79% 5.94% 6.04% What is the price per $100 face value of a four-year, zero-coupon, risk-free bond?
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