Please solve clearly and explain all steps A 14-year zero annual coupon bond with a YTM...

Question

Question

Please solve clearly and explain all steps

Answer 1

Answer #1

Assuming Face value i.e, maturity value of the bond is $1000

Calculation as Follows:

1/(1 + 2.47/100)^14 = 0.710633527 multiplied by Face value give you $ 710.63 is the selling price

Answer 2

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