A 15-year zero coupon $1,000 Par Value bond is available for purchase today. Similar bonds have YTM

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A 15-year zero coupon $1,000 Par Value bond is available for purchase today. Similar bonds have YTM = 8.0%. What will be the price of this bod today?

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Essentials of Managerial Finance

ISBN: 978-0324422702

14th edition

Authors: Scott Besley, Eugene F. Brigham

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Posted Date: Mar 10, 2023 12:05 AM

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A 15-year zero coupon $1,000 Par Value bond is available for purchase today. Similar bonds have YTM

Question:

Expert Answer:

solution To calculate the price of the bond we can use the present value formula PV FV 1 rn Where P... View the full answer

Essentials of Managerial Finance

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