What is the value today of a zero-coupon bond with par value of $1,000 maturing in 12 years if the market rate of interest (yield to maturity) is 14%? Group of answer choices $792.44 $207.56 $1,000.00 $500.00 $700.00
What is the value today of a zero-coupon bond with par value of $1,000 maturing in 12 years if the market rate of interest (yield to maturity) is 14%? Group of answer choices $792.44 $207.56 $1,000.00 $500.00 $700.00
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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What is the value today of a zero-coupon bond with par value of $1,000 maturing in 12 years if the market rate of interest (yield to maturity) is 14%?
Group of answer choices
$792.44
$207.56
$1,000.00
$500.00
$700.00
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