27 years ago, Mini Max Inc. issued 30 year to maturity zero-coupon bonds with a parvalue of $1,000. Now the bond has a yield to maturity of 10.80 percent,compounded semi-annually. What is the current price of the bond?Round the answer to two decimal places.

Bonds are commonly used to raise funds, fund projects, and provide income to investors. They provide…

Answered: 27 years ago, Mini Max Inc. issued 30…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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27 years ago, Mini Max Inc. issued 30 year to maturity zero-coupon bonds w walue of $1,000. Now the bond has a yield to maturity of 10.80 percent, compounded semi-annually. What is the current price of the bond?