What is the value of zero-coupon bond with a par value of $1,000 and a yield to maturity of 9.74%? The bond has 29 years to maturity. SET YOUR CALCULATOR TO 4 DECIMAL PLACES THEN ROUND YOUR ANSWER TO 2 DECIMALS i.e. if your answer is 1.2455, enter it as 1.25.

What is the value of zero-coupon bond with a par value of $1,000 and a yield to maturity of 9.74%? The bond has 29 years to maturity. SET YOUR CALCULATOR TO 4 DECIMAL PLACES THEN ROUND YOUR ANSWER TO 2 DECIMALS i.e. if your answer is 1.2455, enter it as 1.25.

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 value of zero-coupon bond with a par value of $1,000 and a yield to
maturity of 9.74%? The bond has 29 years to maturity. SET YOUR CALCULATOR TO
4 DECIMAL PLACES THEN ROUND YOUR ANSWER TO 2 DECIMALS i.e. if your
answer is 1.2455, enter it as 1.25.

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