A zero-coupon bond pays no coupons and only pays a redemption amount at the time...
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A zero-coupon bond pays no coupons and only pays a redemption amount at the time the bond matures. Greta can buy a zero-coupon bond that will pay 10,000 at the end of 10 years and is currently selling for 5,083.49. Instead she purchases a 10-year 10,000 par value bond that pays 10% coupons semiannually and will be redeemed at par at the end of 10 years. If she pays X she will earn the same annual effective interest rate as the zero coupon bond. Calculate X.
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