Homework Answers
Face value of Zero Bond(F) = $1,000
Market yield rate(i) = 4.2%
Years until maturity (n) = 30
Thus,
Current value of Bond (Bz):
Funds need to be raised = $2,200,000
No. of Zero Bond to be issued to raise required fund:
Hope it will help, please do comment if you need any further explanation. Your feedback would be highly appreciated.
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