You find a zero coupon bond with a par value of $10,000 and 17 years to maturity. If the yield to maturity on this bond is 4.2 percent, what is the price of the bond? Assume semiannual compounding periods.

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Arnaud Gourlay asked Jun 19, 2023

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12 votes

You find a zero coupon bond with a par value of

$10,000 and 17 years to maturity. If the yield to maturity on this bond is 4.2 percent,
what is the price of the bond? Assume semiannual compounding periods.

Mathematics
college

Arnaud Gourlay asked Jun 19, 2023

by Arnaud Gourlay

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20 votes

Answer:

20271.00...

Explanation:

10000 x (1 + 4.2% ÷ 2)17 x 2

Srikanth Chekuri answered Jun 26, 2023

by Srikanth Chekuri

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