Question
In: Finance
What is the quote of a 5 year, zero coupon bond with $1000 face value if...
What is the quote of a 5 year, zero coupon bond with $1000 face
value if the yield to maturity is 2.6% (semiannual compounding)?
Round to 3 decimal places
Solutions
Expert Solution
We know that,
Face Value = Current Price * (1+ytm/2)^no. of periods
1000 = Current Price * (1 + 0.026/2)^10
Current Price = 878.83 Answer
jeff jeffy answered 2 years agoRelated Solutions
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