You are seriously considering an investment in Zero Coupon Bonds. The specific bond you are evaluating has a face value of $4,181 and matures in 13 years. What would be the most you should be willing to pay per bond if the appropriate discount rate for this security equals to 12.50% ? Round your answer to the nearest penny.
You are seriously considering an investment in Zero Coupon Bonds. The specific bond you are evaluating has a face value of $4,181 and matures in 13 years. What would be the most you should be willing to pay per bond if the appropriate discount rate for this security equals to 12.50% ? Round your answer to the nearest penny.
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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You are seriously considering an investment in Zero Coupon Bonds. The specific bond you are evaluating has a face value of
$4,181
and matures in 13 years. What would be the most you should be willing to pay per bond if the appropriate discount rate for this security equals to
12.50%
? Round your answer to the nearest penny.
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