General Motors issued some zero-coupon bonds which will mature in 7 years. If the investors require a

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General Motors issued some zero-coupon bonds which will mature in 7 years. If the investors require a return of 10%, what should the bond sell for? Assume a face value of $1000.

a. $513

b. $573

c. $300

d. Cannot determine.

e. none of the above.

Related Book For answer-question

Fundamentals of Corporate Finance

ISBN: 978-1259722615

9th edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

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Posted Date: Jan 08, 2021 07:18 PM

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General Motors issued some zero-coupon bonds which will mature in 7 years. If the investors require a

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Bond PriceFace Value1r n 10001010 7 513 Bond Price sell 513 Expla... View the full answer

Fundamentals of Corporate Finance

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