Question

Company A offers a zero coupon bond with a yield to maturity of 25 percent. The...

Company A offers a zero coupon bond with a yield to maturity of 25 percent. The bond matures in 1 years and has a face value of $1,000. What is this bond worth today? Assume annual compounding.

A) $1000

B) $800

C) $1250

D) $1562.5

E) $640

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Answer #1

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SOLVED WITH BA II PLUS CALCULATOR

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