Question: 5. A zero coupon bond makes no interest payments over the life of the bond. The investor receives a single payment when the bond matures,

5. A zero coupon bond makes no interest payments over the life of the bond. The investor receives a single payment when the bond matures, consisting of his original investment and the interest (compounded semiannually) that he has earned. Like other bonds they are sold at a significant discount. Suppose you buy a 15 year zero coupon bond paying 4.5% interest (compounded semiannually for $12824.50. What is the final value of the bond (this is often called the face value) USE EXCEL

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