A Firm Offers a Zero Coupon Bond with a Face

question 25

Multiple Choice

A firm offers a zero coupon bond with a face value of $1,000 that matures in 10 years.What is the current market price if the yield to maturity is 7.6 percent,given semiannual compounding?

• A)$474.30
• B)$473.26
• C)$835.56
• D)$919.12
• E)$1,088.00

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