A zero coupon bond with a face value of $23,000 matures in 14 years. What should the bond be sold for now if its rate of return is to be 4.207% compounded annually? Round to the nearest dollar. tA

Algebra and Trigonometry (MindTap Course List)
4th Edition
ISBN:9781305071742
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter13: Sequences And Series
Section13.CR: Chapter Review
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A zero coupon bond with a face value of $23,000 matures
in 14 years. What should the bond be sold for now if its
rate of return is to be 4.207% compounded annually?
$
Round to the nearest dollar.
LA
Transcribed Image Text:A zero coupon bond with a face value of $23,000 matures in 14 years. What should the bond be sold for now if its rate of return is to be 4.207% compounded annually? $ Round to the nearest dollar. LA
Zero Coupon Bond
A zero coupon bond is a bond that is sold now at a
discount and will pay its face value when it matures. No
interest payments are made.
Transcribed Image Text:Zero Coupon Bond A zero coupon bond is a bond that is sold now at a discount and will pay its face value when it matures. No interest payments are made.
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