Question

You find a zero coupon bond with a par value of $10,000 and 23 years to maturity. The yield to maturity on this bond is 4.5 percent. Assume semiannual compounding periods. |

What is the price of the bond? |

Step 1

**Calculation of Price of Bond:**

The price of bond is **$3,593.25**.

**Excel Spreadsheet:**

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