Bartlett Co. wants to issue sixty 20-year, $1,000 par value, zero-coupon bonds. If each bond is priced to yield 7 percent, how much will Bartlett receive (ignoring issuance costs) when the bonds are first sold?   A. $11,212   B. $12,393   C. $15,505   D. $18,880

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
Problem 16P
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Bartlett Co. wants to issue sixty 20-year, $1,000 par value, zero-coupon bonds. If each bond is priced to yield 7 percent, how much will Bartlett receive (ignoring issuance costs) when the bonds are first sold?

  A.

$11,212

  B.

$12,393

  C.

$15,505

  D.

$18,880

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