A pure discount (or zero-coupon) government bond has a face value of $25,000 and a yield of

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A pure discount (or zero-coupon) government bond has a face value of $25,000 and a yield of 3.501%. If the current price of the bond is $20,300, what is the maturity of the bond in years?

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Financial Management for Public Health and Not for Profit Organizations

ISBN: 978-0132805667

4th edition

Authors: Steven A. Finkler, Thad Calabrese

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Posted Date: Feb 26, 2024 02:31 AM

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A pure discount (or zero-coupon) government bond has a face value of $25,000 and a yield of

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Expert Answer:

To find the maturity of the bond we can use the formula for the present value of a zerocoupon bon... View the full answer

Financial Management for Public Health and Not for Profit Organizations

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