Calculate the Price of a Zero-Coupon Bond That Matures in 20

question 127

Multiple Choice

Calculate the price of a zero-coupon bond that matures in 20 years if the market interest rate is 8.5 percent. (Assume annual compounding and a par value of $1,000.)

• A) $90.29
• B) $195.62
• C) $1,195.62
• D) $995.62

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