Calculate the price of a zero-coupon bond that matures in 12 years if the market interest rate is 6.05 percent. Assume s...
Calculate the price of a zero-coupon bond that matures in 12 years if the market interest rate is 6.05 percent. Assume semiannual compounding.
Homework Answers
n = 12 * 2 = 24 semi-annual periods, r = 6.05%/2 = 3.025% (semi-annually)
Value = 1000/2.0447
Value = $489.08
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