You are offered a zero-coupon bond with a $1,000 face value and 5 years left to maturity. If the required return on the bond is 8%, what is the most
You are offered a zero-coupon bond with a $1,000 face value and 5 years left to maturity. If the required return on the bond is 8%, what is the most you should pay for this bond?
AnswerZero Coupon Bond = Face value/= $1000 /=$1000/1.4693=$680.59
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