You find a zero coupon bond with a par value of $10,000 and 29 years tomaturity. If the yield to maturity on this bond is 4.2 percent, what is the dollarprice of the bond? Assume semiannual compounding periods.Note: Do not round intermediate calculations and round your answer to 2decimal places, e.g., 32.16.

1) For a zero-coupon bond, the present value formula is: PV = FV / (1 + r/m)^(n*m) Where: PV =…

Answered: You find a zero coupon bond with a par…

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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