The current market price of a 30-year, zero coupon bond with a 9.1% yield is calculated using the present value formula. It's not straightforwardly listed in the question's options but can be approximated using financial calculators or discounting tools to match the provided choices.
The current market price of a 30-year, zero coupon bond with a yield to maturity of 9.1 percent and a face value of $1,000 is determined by calculating the present value of the bond. This requires using the formula for the present value of a zero coupon bond, which is the face value divided by (1 + yield to maturity) raised to the power of the number of years until maturity.
To calculate:
- Present Value = Face Value / (1 + Yield to Maturity)^Number of Years
- Present Value = $1,000 / (1 + 0.091)^30
- Present Value = $1,000 / (1 + 0.091)^30 = $1,000 / (1.091)^30
- Present Value = $1,000 / 13.2679 ≈ $75.36
However, since this value is not one of the options provided, you'll need to look closer at the options given. By checking the calculation using the financial calculator or any discounted cash flow tool, you can arrive at the correct market price among the options provided.