Question: Terry and Perry wants to issue 1 0 - year, zero coupon bonds that yield 7 . 5 percent. A zero - coupon bond is

Terry and Perry wants to issue 10-year, zero coupon bonds that yield 7.5 percent. A zero-coupon bond is a bond that pays no interest. Therefore, it always sells at a discount. How much will you pay for these bonds if the face value is $1,000?(Assume semi-annual compounding.)
a.
$692.02
b.
$235.41
c.
$356.08
d.
$478.89
e.
$369.94

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