Question: Zero Coupon Bonds 7. Zen recently bought a zero coupon bond for $245. It matures in 23 years and will pay $1,000 at maturity. What

Zero Coupon Bonds

7. Zen recently bought a zero coupon bond for $245. It matures in 23 years and will pay $1,000 at maturity. What is the return that Zen will earn if he holds the bond until maturity?

8. Abigail is looking at a zero coupon bond that will pay $5,000 at maturity in 13 years. She will not invest unless she can earn at least 6.5% on her money. What is the most she will pay for the bond?

9. Billy Bob bought a zero coupon bond 2 years ago for $425. It matures in 9 years when it will pay $1,000. What will Billy Bob

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