Question: You buy a 30 year zero coupon bond which will pay you $1,000 in 30 years at an annual yield of 15.0% compounded annually. 25

You buy a 30 year zero coupon bond which will pay you $1,000 in 30 years at an annual yield of 15.0% compounded annually. 25 years later it will be a 5 year zero coupon bond. Suppose the interest rate at that time will be 15.0%. What will the price of this bond be in 25 years?

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