Consider a zero-coupon bond with a $1,000face value and 20 years left until maturity. if the YTM of this bond is 8.9%, t...

Question

Question

Consider a zero-coupon bond with a $1,000face value and 20 years left until maturity. if the YTM of this bond is 8.9%, t...

Consider a zero-coupon bond with a $1,000face value and 20 years left until maturity. if the YTM of this bond is 8.9%, then the price of this bond is closest to:

a. $218.08

b. $182.00

c. $254.43

d. $1,000.00

business finance

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Value of bond=Face value/(1+YTM)^time period

=$1000/(1.089)^20

=$1000*0.181736603

=$182.00(Approx).

Add a comment

Answer 2

Similar Homework Help Questions

Consider a zero-coupon bond with a $100 face value and 20 years left until maturity. If the YTM of this bond is 5.4%, t...

Consider a zero-coupon bond with a $100 face value and 20 years left until maturity. If the YTM of this bond is 5.4%, then the price of this bond is closest to: O A. $100.00 OB. $41.91 O C. $48.90 OD. $35.00
Consider a zero-coupon bond with a $1,000 face value and 10 years left until maturity. If...

Consider a zero-coupon bond with a $1,000 face value and 10 years left until maturity. If the YTM of this bond is 10.2%, then the price of this bond is closest to ________. . $378.60 b. $530.04 c. $454.32 d. $1,000 e. $232.96
Consider a zero-coupon bond with a $100 face value and 10 years left until maturity. If...

Consider a zero-coupon bond with a $100 face value and 10 years left until maturity. If the YTM of this bond is 51%, then the price of this bond is closest to O A. $72.97 OB. 585.13 OC. $100.00 OD. $6100

Consider a zero−coupon bond with a $1,000 face value and 20 years to maturity. The price...

Consider a zero−coupon bond with a $1,000 face value and 20 years to maturity. The price this bond will trade for if the YTM is 6% is closest to: A.$312 B.$335 C.$306 D.$215
#22. Consider a zero-coupon bond with $ 100 face value and 15 years to maturity. The...

#22. Consider a zero-coupon bond with $ 100 face value and 15 years to maturity. The price will this bond trade if the YTM is 6.1% is closest to: A. $ 41.14 B. $ 49.37 C. $ 57.6 D. $ 65.82
Consider a zero-coupon bond with $1,000 face value and 15 years to maturity. The price will...

Consider a zero-coupon bond with $1,000 face value and 15 years to maturity. The price will this bond trade if the YTM is 7% is closest to: O A. $507.42 O B. $362.45 O C. $579.91 OD. $434.94

Q. consider the following $1,000 par value zero-coupon bonds: Bond Years to Maturity YTM A 1...

Q. consider the following $1,000 par value zero-coupon bonds: Bond Years to Maturity YTM A 1 3% B 2 4% C 3 5% D 4 6% a. What is the expected 1-year interest rate in the 3rd year? b. What will be the price of the 2-year zero-coupon bond after 2 years? c. Suppose, next year, you consider buying 3-year zero-coupon bond and holding it for 2 years. What will be the realized compound return?
27) A risk-free, zero-coupon bond with a face value of $5000 has 20 years to maturity....

27) A risk-free, zero-coupon bond with a face value of $5000 has 20 years to maturity. If the YTM is 4.6%, which of the following would be closest to the price this bond will trade at? Interest is calculated annually. A) $2441 B) $2034 C) $3254 D) $2848
Please help Consider a zero-coupon bond with a 5100 face value and 10 years loft until...

Please help Consider a zero-coupon bond with a 5100 face value and 10 years loft until maturity. If the YTM of this bond is 5.1%, then the price of this bond is closest to 21/19 Som 2119 59pm O A 572 97 OB. 58513 OC. 5100.00 OD. 561.00 02/19 12/19 pm 4/19 59pm

Consider a zero-coupon bond with $1,000 face value and 29 to maturity. If the YTM is...

Consider a zero-coupon bond with $1,000 face value and 29 to maturity. If the YTM is 4.27%, this bond will trade at a price of? please Submit your answers with 4 decimals after the dot

Consider a zero-coupon bond with a $1,000face value and 20 years left until maturity. if the YTM of this bond is 8.9%, t...

Homework Answers

Add Answer to:
Consider a zero-coupon bond with a $1,000face value and 20 years left until maturity. if the YTM of this bond is 8.9%, t...

Post as a guest

Earn Coins

Consider a zero-coupon bond with a $100 face value and 20 years left until maturity. If the YTM of this bond is 5.4%, t...

Consider a zero-coupon bond with a $1,000 face value and 10 years left until maturity. If...

Consider a zero-coupon bond with a $100 face value and 10 years left until maturity. If...

Consider a zero−coupon bond with a $1,000 face value and 20 years to maturity. The price...

#22. Consider a zero-coupon bond with $ 100 face value and 15 years to maturity. The...

Consider a zero-coupon bond with $1,000 face value and 15 years to maturity. The price will...

Q. consider the following $1,000 par value zero-coupon bonds: Bond Years to Maturity YTM A 1...

27) A risk-free, zero-coupon bond with a face value of $5000 has 20 years to maturity....

Please help Consider a zero-coupon bond with a 5100 face value and 10 years loft until...

Consider a zero-coupon bond with $1,000 face value and 29 to maturity. If the YTM is...

Consider a zero-coupon bond with a $1,000face value and 20 years left until maturity. if the YTM of this bond is 8.9%, t...

Homework Answers

Add Answer to: Consider a zero-coupon bond with a $1,000face value and 20 years left until maturity. if the YTM of this bond is 8.9%, t...

Post as a guest

Earn Coins

Add Answer to:
Consider a zero-coupon bond with a $1,000face value and 20 years left until maturity. if the YTM of this bond is 8.9%, t...