Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. what interest rate is implicit in a $1,000 par val

What interest rate is implicit in a $1,000 par value zero-coupon bond that matures in 9...

90.2K

Verified Solution

Question

Finance

What interest rate is implicit in a $1,000 par value zero-couponbond that matures in 9 years if the current price is $560.

Answer & Explanation Solved by verified expert
4.2 Ratings (720 Votes)
Solution The interest rate implicit rate in a zero coupon bond can be calculated using the following formula Interest rate    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

What interest rate is implicit in a $1,000 par value zero-couponbond that matures in 9 years if the current price is $560.

Other questions asked by students

Q

Based on the material from the "U.S. Department of JusticeForensic Examination of Digital Evidence:...

Accounting
Q

Let A = | 0.4 −0.3 | | 0.4 1.2 | Analyze the long-term behavior of Ak ,...

Advance Math
Q

Charges 3 micro coulombs and -6 micro coulombs are placed 5cm from each other. Find where...

Physics
Q

In Exercises 13 16 use a rectangular coordinate system to plot u 1 2 v...

Basic Math
Q

Answer the questions about the following function.f(x)=3x-x-2(a) Is the point (-1,2) on the graph of...

Basic Math
Q

13 A manufacturer claims that fewer than 6 of its fax machines are defective In...

Statistics
Q

Find the linear regression line for the following table of values You will need to...

Statistics
Q

The graph of a polynomial function is given to the right On the basis of...

Algebra
Q

Compare and contrast the concepts of breach of contract, negligence, gross negligence, and fraud. What...

Accounting
Q

Work in process, August 1,1,100 pounds, 60% completed $4,092= "Oirect materials...

Accounting
Q

How is accounting for contributions different between public and private universities in the United States?

Accounting
Q

QUESTION 22 Nickel LLC has income statement and balance sheet shown below. Investors in Nickel...

Finance