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Navarro, Inc., plans to issue new zero coupon bonds with a par value of $1,000 to...

Navarro, Inc., plans to issue new zero coupon bonds with a par value of $1,000 to fund a new project. The bonds will have a YTM of 6.03 percent and mature in 30 years. If we assume semiannual compounding, at what price will the bonds sell?

Multiple Choice $164.05 $168.26 $161.53 $172.64 $162.65

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Answer #1

Calculate the value of the bond as follows:

Value of bond is $168.26.

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