You could purchase a zero coupon bond that has a maturity value of $ 25,000 and earns

Question:

You could purchase a zero bond that has a value of $ 25,000 and earns a current market rate of 3 percent. If the bond matures in 10 years and we assume semiannual compounding, what is the bond worth today?
A. Solve using a spreadsheet program such as Excel.
B. Solve using a financial calculator.

Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...