What is the price today (in dollars and cents) of a 15-year zero coupon bond if...
What is the price today (in dollars and cents) of a 15-year zero coupon bond if the required rate of return is 8.99%. The bond face value is $1000. $ Place your answer in dollars and cents. You should set your calculator for at least four decimal places of accuracy.
Homework Answers
Price = FV / ( 1 + r)n
Price = 1,000 / ( 1 + 0.0899)15
Price = 1,000 / 3.637473
Price = $274.9161
You can also use a financial calculator:
FV 1000
N 15
I/Y 8.99
CPT PV
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