What Is the Value of a Zero-Coupon Bond with a Yield

question 136

Multiple Choice

What is the value of a zero-coupon bond with a yield to maturity of 9 percent, a par value of $1,000, and 10 years to maturity? (Assume semi-annual compounding)

• A) $208.29
• B) $414.64
• C) $422.41
• D) $643.93
• E) $910.00

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