A risk-less zero-coupon (no coupon payments) bond that will pay $1,000 in 9 years is offering...

Question

Question

A risk-less zero-coupon (no coupon payments) bond that will pay $1,000 in 9 years is offering a 2% implied rate of return. Wh

Answer 1

Answer #1

Price of the zero coupon bond = present value of the par value of bond $837 1,000 = (1.0249)

Answer 2

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