Question

A zero-coupon bond is a security that pays no interest, and is therefore bought at a substantial discount from its face value. If the interest rate is 6% with annual compounding how much would you pay today for a zero-coupon bond with a face value of $800 that matures in 10 years? Please round your answer to the nearest hundredth.

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Answer to a math question A zero-coupon bond is a security that pays no interest, and is therefore bought at a substantial discount from its face value. If the interest rate is 6% with annual compounding how much would you pay today for a zero-coupon bond with a face value of $800 that matures in 10 years? Please round your answer to the nearest hundredth.

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Clarabelle

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94 Answers

Its Approximately $446.68

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