Suppose a five-year bond is purchased with an APR of 5.75% The face value of the...

Question

Question

Suppose a five-year bond is purchased with an APR of 5.75% The face value of the bond is $3000 Find the purchase price of the bond

math Statistics-And-Probability

Answer 1

Answer #1

Answer

Given by:

here,

The price of the zero coupon bond as = the present value of the par value of bond

= $2,268.40

3000/(1.0575^5)

Answer 2

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