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S07-09 Zero Coupon Bonds [LO2) You find a zero coupon bond with a par value of $10,000 and 17 years to maturity. If the yield
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Solution: Calculation of Price of the Bond: Price of bond=Par value/(1+YTM/2)^(2*period) =$10,000/(1+0.042/2)^(2*17) =$10,000

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