Zero Coupon Bond Price Calculate the price of a zero coupon bond that matures in 9 years if the market interest rate is 8 percent. Assume semi-annual interest payments and $1,000 par value. Note: Round your answer to 2 decimal places. Multiple Choice $920.00 О $493.63 О $500.25 $1,000.00
Zero Coupon Bond Price Calculate the price of a zero coupon bond that matures in 9 years if the market interest rate is 8 percent. Assume semi-annual interest payments and $1,000 par value. Note: Round your answer to 2 decimal places. Multiple Choice $920.00 О $493.63 О $500.25 $1,000.00
Chapter14: Investing In Stocks And Bonds
Section: Chapter Questions
Problem 6DTM
Question
![Zero Coupon Bond Price Calculate the price of a zero coupon bond that matures in 9 years if the market interest rate is 8 percent. Assume semi-annual interest payments and $1,000
par value.
Note: Round your answer to 2 decimal places.
Multiple Choice
$920.00
О
$493.63
О
$500.25
$1,000.00](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fac3be618-b645-4bd8-855b-808ff3fc18d4%2F626ad658-48d6-46db-8912-21ac5a2acb30%2Farwzovm_processed.png&w=3840&q=75)
Transcribed Image Text:Zero Coupon Bond Price Calculate the price of a zero coupon bond that matures in 9 years if the market interest rate is 8 percent. Assume semi-annual interest payments and $1,000
par value.
Note: Round your answer to 2 decimal places.
Multiple Choice
$920.00
О
$493.63
О
$500.25
$1,000.00
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