Answered: A zero - coupon bond has a face value…

A zero - coupon bond has a face value of R10000.it matures in 13years. The yield to maturity is 4.7 % . Assume semi-annual compounding .Calculate the value of the bond.

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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Question

A zero - coupon bond has a face value of R10000.it
matures in 13years. The yield to maturity is 4.7 % .
Assume semi-annual compounding .Calculate the value
of the bond.

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