You find a zero coupon bond with a par value of $10,000 and 20 years to maturity. The yield to maturity on this bond is 4.2 percent. Assume semiannual compounding periods. What is the dollar price of the bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Price

Personal Finance
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ISBN:9781337669214
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Chapter14: Investing In Stocks And Bonds
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You find a zero coupon bond with a par value of $10,000 and 20 years to maturity. The
yield to maturity on this bond is 4.2 percent. Assume semiannual compounding
periods. What is the dollar price of the bond? (Do not round intermediate calculations
and round your answer to 2 decimal places, e.g., 32.16.)
Price
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Transcribed Image Text:You find a zero coupon bond with a par value of $10,000 and 20 years to maturity. The yield to maturity on this bond is 4.2 percent. Assume semiannual compounding periods. What is the dollar price of the bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Price ( Prev 8 of 10 Next >
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