What is the value of a Zero Coupon Bond with $1,000 Face Amount, maturing in 3 years.
Assume similar bonds have a Yield to Maturity (YTM) of 3.5%
Using financial calculator to find the value of bond:
Inputs:Fv= 1,000
I/y= 3.5%
N = 3
Pmt= 0
Pv= compute
We get, current value of the bond as $901.94
What is the value of a Zero Coupon Bond with $1,000 Face Amount, maturing in 3...
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