A zero-coupon bond has 9 years to maturity and a yield of 5%. What is the...

A zero-coupon bond has 9 years to maturity and a yield of 5%. What is the value of the bond?

Expert Solution

Value of the bond = FV / (1 + r)^t

Value of the bond = $1,000 / (1 + 0.05)^9

Value of the bond = $644.61

jeff jeffy answered 2 years ago

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