18 S S What is the price of a five-year, zero-coupon, default-free security with a face value of $1000? Maturity(years) 1 2 3 Zero-coupon YTM 4.6% 5.0% 5.4% 4 5.8% 5 6.1%

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
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What is the price of a five year zero-coupon, default free security with a face value of $1000. 

18
S
S
What is the price of a five-year, zero-coupon, default-free security with a face value of $1000?
Maturity(years)
1
2
3
Zero-coupon YTM 4.6%
5.0%
5.4%
4
5.8%
5
6.1%
Transcribed Image Text:18 S S What is the price of a five-year, zero-coupon, default-free security with a face value of $1000? Maturity(years) 1 2 3 Zero-coupon YTM 4.6% 5.0% 5.4% 4 5.8% 5 6.1%
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