Question: Assuming semiannual compounding, a 20-year zero coupon bond with a par value of $1,000 and a required return of 12.6% would be priced at _________.

Assuming semiannual compounding, a 20-year zero coupon bond with a par value of $1,000 and a required return of 12.6% would be priced at _________.

Multiple Choice

  • $888.10

  • $86.83

  • $940.73

  • $93.16

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