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%

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.

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