A zero coupon bond pays no annual coupon interest payments. When it m
A zero coupon bond pays no annual coupon interest payments.
When it matures at the end of 7.5
years it pays out $1,000. If investors wish to earn 2.35% per year on this bond investment, what is
the current price of the bond? (Round to the nearest dollar.)
A) $875 B) $561 C) $840 D) $533
ANSWER
C
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