For a zero coupon bond, use the following information to calculate its price. Years left to...

For a zero coupon bond, use the following information to calculate its price.

Years left to maturity = 10 years. Yield = 8%.

502.57
508.35
463.19
456.39

Solutions

Expert Solution

The price is computed as follows:

= Par value / (1 + r)ⁿ

= $ 1,000 / 1.08¹⁰

= $ 463.19

jeff jeffy answered 2 years ago

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