Answered

Welcome to Westonci.ca, your one-stop destination for finding answers to all your questions. Join our expert community now! Connect with a community of experts ready to provide precise solutions to your questions quickly and accurately. Explore comprehensive solutions to your questions from knowledgeable professionals across various fields on our platform.

You find a zero coupon bond with a par value of $10,000 and 27 years to maturity. The yield to maturity on this bond is 4.9 percent. Assume semiannual compounding periods. What is the price of the bond

Sagot :

Zviko

Answer:

$2,706.16

Explanation:

The Price of the Bond is also known as its Present Value or PV.

This is calculated as follows :

FV = $10,000

N = 27 × 2 = 54

I = 4.9 %

P/YR = 2

PMT = $0

PV = ?

Using a financial calculator to input the value as above, the PV is $2,706.16

Therefore, the price of the bond is $2,706.16

Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. Thank you for visiting Westonci.ca. Stay informed by coming back for more detailed answers.