Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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You own a zero coupon bond of Amazon. It matures in 2 years, has a face (par) value of $1,000. An investor is interested in buying the bond from you if she can earn a yield to maturity of 2.75%. Use annual compounding.
How much is the investor willing to pay for the bond (what is the value of the bond )?
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