Answered: Calculate the price of a zero-coupon…

Calculate the price of a zero-coupon bond that matures in 19 years if the market interest rate is 5.1 percent. Assume semiannual compounding.

Fundamentals of Financial Management (MindTap Course List)

14th Edition

ISBN:9781285867977

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter7: Bonds And Their Valuation

Section: Chapter Questions

Problem 16P

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Question

Problem 7-6 Zero Coupon Bond Price (LG7-4)
Calculate the price of a zero-coupon bond that matures in 19 years if the market interest rate is 5.1 percent. Assume semiannual
compounding.
Note: Do not round intermediate calculations and round your final answer to 2 decimal places.
Zero-coupon bond price
$
9-19

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