question archive A 30-year zero bond with a $1,000 face value is selling to yield 8%
A 30-year zero bond with a $1,000 face value is selling to yield 8%
Subject:FinancePrice:2.86 Bought9
A 30-year zero bond with a $1,000 face value is selling to yield 8%. (Assume annual periods.) What is its market price? Select one: O a. $99.38 O b. $ 90.00 c. $71.29 O d. $ 5.68
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Bond Face Value = $1,000
Time Period = 30 years Yield = 8%
Calculating Bond Price,
Bond Price = 1,000/(1 + 0.08)³?
Bond Price = $99.38
