Question: A zero coupon bond which is semiannual compounding has a par value of $1,000. It matures in 20 years and has a required return of

A zero coupon bond which is semiannual compounding has a par value of $1,000. It matures in 20 years and has a required return of 12%. The intrinsic value of the bond today will be _________.

	A.	$97.22
	B.	$104.49
	C.	$364.08
	D.	$732.14

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