Question: Problems 6366 involve zero-coupon bonds. A zero-coupon bond is a bond that is sold now at a discount and will pay its face value at

Problems 63–66 involve zero-coupon bonds. A zero-coupon bond is a bond that is sold now at a discount and will pay its face value at the time when it matures; no interest payments are made.

How much should a $10,000 face-value, zero-coupon bond, maturing in 10 years, be sold for now if its rate of return is to be 4.5% compounded annually?

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