What should be the price of a bond which does not make coupons payments, has a...

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What should be the price of a bond which does not make coupons payments, has a...

What should be the price of a bond which does not make coupons payments, has a one thousand dollar face value, and eight-year maturity, when the required rate of return is 4.5%?

		$722.65
		$687.44
		$703.19
		$733.73
		$781.20

business finance

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Answer 1

Answer #1

Price of bond=$1000*Present value of discounting factor(rate%,time period)

=1000/1.045^8

=1000*0.703185127

=$703.19(Approx).

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Answer 2

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