zero coupon bond is a bond that is sold now at a discount and will pay its face value when it matures. No interest payments are made. Use this information to answer A zero coupon bond with a face value of $14,000 matures in 23 years. What should the bond be sold for now if its rate of return is to be 5.445% compounded annually? $ . Round to the nearest dollar.
A zero coupon bond is a bond that is sold now at a discount and will pay its face value when it matures. No interest payments are made.
Use this information to answer
A zero coupon bond with a face value of $14,000 matures in 23 years. What should the bond be sold for now if its rate of return is to be 5.445% compounded annually?
$ . Round to the nearest dollar.
You buy a zero coupon bond with a face value of $15,000 that matures in 28 years for $6,000. What is your annual compound rate of return?
%. Round to the nearest thousandths of a percent (3 decimal places).
You have $10,000 to invest, and you do not need to collect on your investment for 10 years.
- Option 1: You can buy a zero coupon bond with a face value of $13,000 that matures in 10 years.
- Option 2: You can deposit the money into a CD account that matures in 10 years with an annual percentage yield (APR) of 5.426%.
Which option should you choose? Enter 1 or 2.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
