A zero coupon bond is a bond that is sold now at a discount and will pay its face value at some time in the future when it matures-no interest payments are made. Azero coupon bond with a face value of $21,000 matures in 17 years. What should the bond be sold for now if its rate of return is to be 2.3% compounded semiannually? A fair price to buy the bond at would be (Round to the nearest cent as needed.)

Algebra and Trigonometry (6th Edition)
6th Edition
ISBN:9780134463216
Author:Robert F. Blitzer
Publisher:Robert F. Blitzer
ChapterP: Prerequisites: Fundamental Concepts Of Algebra
Section: Chapter Questions
Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...
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A zero coupon bond is a bond that is sold now at a discount and will pay its face value at some time in the future when it matures-no interest payments are made.
A zero coupon bond with a face value of $21,000 matures in 17 years. What should the bond be sold for now if its rate of return is to be 2.3% compounded semiannually?
.....
A fair price to buy the bond at would be $.
(Round to the nearest cent as needed.)
Transcribed Image Text:A zero coupon bond is a bond that is sold now at a discount and will pay its face value at some time in the future when it matures-no interest payments are made. A zero coupon bond with a face value of $21,000 matures in 17 years. What should the bond be sold for now if its rate of return is to be 2.3% compounded semiannually? ..... A fair price to buy the bond at would be $. (Round to the nearest cent as needed.)
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