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Highland Corp., a U.S. company, has a 6 year bond whose yield to maturity is 5...

Highland Corp., a U.S. company, has a 6 year bond whose yield to maturity is 5 percent. The bond has no coupon payments but assume semi annual compounding. What is the price of this zero coupon bond? Round the answer to 2 decimal places.

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Answer #1
                  K = Nx2
Bond Price =∑ [(Semi Annual Coupon)/(1 + YTM/2)^k]     +   Par value/(1 + YTM/2)^Nx2
                   k=1
                  K =6x2
Bond Price =∑ [(0*1000/200)/(1 + 5/200)^k]     +   1000/(1 + 5/200)^6x2
                   k=1
Bond Price = 743.56
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