What is the value of zero-coupon bond with a par value of $1,000 and a yield to maturity of 5.08%? The bond has 12 years to maturity. SET YOUR CALCULATOR TO 4 DECIMAL PLACES THEN ROUND YOUR ANSWER TO 2 DECIMALS i.e. if your answer is 1.2455, enter it as 1.25.

What is the value of zero-coupon bond with a par value of $1,000 and a yield to maturity of 5.08%? The bond has 12 years to maturity. SET YOUR CALCULATOR TO 4 DECIMAL PLACES THEN ROUND YOUR ANSWER TO 2 DECIMALS i.e. if your answer is 1.2455, enter it as 1.25.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter6: Fixed-income Securities: Characteristics And Valuation

Section: Chapter Questions

Problem 8P

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Question

Bhupatbhai

What is the value of zero-coupon bond with a par value of $1,000 and a yield to
maturity of 5.08%? The bond has 12 years to maturity. SET YOUR CALCULATOR TO
4 DECIMAL PLACES THEN ROUND YOUR ANSWER TO 2 DECIMALS i.e. if your
answer is 1.2455, enter it as 1.25.

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