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Zero-coupon bond. Wesley Company will issue a zero-coupon bond this coming month. The projected bond yield...

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Finance

Zero-coupon bond. Wesley Company will issue a zero-coupon bondthis coming month. The projected bond yield is 8%. If the par valueis ?$100,000, what is the? bond's price using a

semiannual convention if a. the maturity is 10 ?years?

b.the maturity is 40 ?years?

c.the maturity is 50 ?years?

d.the maturity is 80 ?years?

Answer & Explanation Solved by verified expert
4.3 Ratings (602 Votes)
aPrice of the Zerocoupon bond if the maturity is 10 years Par Value of the Bond 100000 Yield to Maturity YTM 400 800 x Maturity Period 20 Years 10 Years x 2 Therefore the Price of ZeroCoupon Bond Par    See Answer
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Transcribed Image Text

Zero-coupon bond. Wesley Company will issue a zero-coupon bondthis coming month. The projected bond yield is 8%. If the par valueis ?$100,000, what is the? bond's price using asemiannual convention if a. the maturity is 10 ?years?b.the maturity is 40 ?years?c.the maturity is 50 ?years?d.the maturity is 80 ?years?

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