Calculate the Price of a Zero Coupon Bond with Yield

question 85

Multiple Choice

Calculate the price of a zero coupon bond with yield to maturity of 8.75%,a face value of $1000,and maturing in 5 years.

• A) $1000
• B) $756.43
• C) $675.44
• D) $435.12
• E) $875.14

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