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Today, you want to sell a $1,000 face value zero coupon bond you currently own. The bond matures in 3.5 years. How much will you receive for your bond if the market yield to maturity is currently 6.19 percent? Ignore any accrued interest. Assume semiannual compounding.

Sagot :

The amount I would receive for the bond when I sell it at the yield to maturity is $810.41.

How much would I receive for the bond?

In order to determine the amount I would receive for the bond, the present value of the bond has to be determined. Present value is the discounted cash flow.

Present value = $10000 / (1.0619)^3.5 = $810.41

To learn more about present value, please check: https://brainly.com/question/26537392

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