Calculate the price of a zero-coupon bond that matures in 14 years if the market interest rate is 6.25 percent. Assume semiannual compounding. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Zero-coupon bond price

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
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ISBN:9781285065137
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter7: Bonds And Their Valuation
Section: Chapter Questions
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Problem 7-12 Zero Coupon Bond Price (LG7-4)
Calculate the price of a zero-coupon bond that matures in 14 years if the market interest rate is 6.25 percent. Assume semiannual
compounding. (Do not round intermediate calculations and round your final answer to 2 decimal places.)
Zero-coupon bond price
Transcribed Image Text:Problem 7-12 Zero Coupon Bond Price (LG7-4) Calculate the price of a zero-coupon bond that matures in 14 years if the market interest rate is 6.25 percent. Assume semiannual compounding. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Zero-coupon bond price
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