25. Assuming semiannual compounding, a 15-year zero coupon bond with a par value of $1,000 and...

Question

Question

25.

Assuming semiannual compounding, a 15-year zero coupon bond with a par value of $1,000 and a required return of 12.8% would be priced at _________.

$164.20

$939.85

$155.51

$886.52

Answer 1

Answer #1

$155.51
Dear Student
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Please find below the answer
Statementshowing Computations
Paticulars	Amount
Amount to be received at the end of 15 Years	1,000.00
PVF for 15 years = (1/1.064)^30	0.15551
Price of bond =1000*.15551	155.51

Answer 2

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