A zero-coupon bond has a yield to maturity of 5% and a par value of $1,000. If the bond matures in 16 years, it should sell for a price of __________ today based on annual compound.
A) $458.11
B) $641.00
C) $789.00
D) $1,100.00
Answer: A
A zero-coupon bond has a yield to maturity of 5% and a par value of $1,000. If the bond matures in 16 years, it should sell for a price of __________ today based on annual compound.
A) $458.11
B) $641.00
C) $789.00
D) $1,100.00
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.