Question: Consider a $1,000 face value zero coupon bond which matures in 15 years. What is the fair price for the bond if the yield is

  1. Consider a $1,000 face value zero coupon bond which matures in 15 years. What is the fair price for the bond if the yield is 2.6%?

a.$680.44

b.$481.02

c.$524.36

d.$623.46

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