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

Personal Finance
13th Edition
ISBN:9781337669214
Author:GARMAN
Publisher:GARMAN
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
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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