(Solved by Humans)-A zero coupon bond pays no annual coupon interest payments. When
Question
A zero coupon bond pays no annual coupon interest payments. When it matures at the end of 7.5 years it pays out $1,000. If investors wish to earn 2.35% per year on this bond investment, what is the current price of the bond? (Round to the nearest dollar.)
| $533 | |
| $561 | |
| $875 | |
| $840 |
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