Suppose you purchase a $1000 face value Zero-coupon bond with a maturity of 30 years and a yield to maturity of 4% quoted with annual compounding. What is the current price of the bond? O a. $1,400.00 Ob.$ 308.31 O c. $1,400.21 O d.$ 400.00 Oe.$ 311.29

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
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QUESTION 18
Suppose you purchase a $1000 face value Zero-coupon bond with a maturity of 30 years and a yield to maturity of 4% quoted with annual compounding
What is the current price of the bond?
Ⓒa. $1,400.00
O b.$ 308 31
O c. $1,400.21
Od.$ 400.00
Oe.$ 311.29
Transcribed Image Text:QUESTION 18 Suppose you purchase a $1000 face value Zero-coupon bond with a maturity of 30 years and a yield to maturity of 4% quoted with annual compounding What is the current price of the bond? Ⓒa. $1,400.00 O b.$ 308 31 O c. $1,400.21 Od.$ 400.00 Oe.$ 311.29
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