Calculate the bond price on the issue date

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A company plans to issue 9-year zero coupon bonds with a face value of $1000. The price is set at the amount that would give potential investors a rate of return of 6% p.a. For the following questions, round your answer to the nearest cent.

Problem 1: Calculate the bond price on the issue date if we assume annual coupons would be paid by comparable risk coupon bonds.

Problem 1: Recalculate the bond price on the issue date if we assume that semi-annual coupons would be paid by comparable risk coupon bonds.

Reference no: EM132773117

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