Question

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.

Answer 1

20271.00...

Explanation:

10000 x (1 + 4.2% ÷ 2)17 x 2