How much should a $10,000 facevalue, zero-coupon bond, maturing in 10 years, be sold for now if

Question:

How much should a $10,000 facevalue, zero-coupon bond, maturing in 10 years, be sold for now if its rate of return is to be 8% compounded annually?

Problem involves 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.

Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...

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