A zero-coupon bond has a face value of $1,000, 30 years until maturity, and a yield- to-maturity of 2.80%. Calculate the price of the bond. $345.81 $245.00 $399.01 None of the above $436.72

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
Problem 4MC
icon
Related questions
Question

5

A zero-coupon bond has a face value of $1,000, 30 years until maturity, and a yield-
to-maturity of 2.80%. Calculate the price of the bond.
$345.81
$245.00
$399.01
None of the above
$436.72
Transcribed Image Text:A zero-coupon bond has a face value of $1,000, 30 years until maturity, and a yield- to-maturity of 2.80%. Calculate the price of the bond. $345.81 $245.00 $399.01 None of the above $436.72
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Intermediate Financial Management (MindTap Course…
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning