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Calculate the minimum price to set for the zero-coupon bond

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A $1000 zero-coupon bond (no cash payments prior to maturity) will pay out its face value of $1000 in five years. In order for the bond to match the value of U.S. Savings Bonds paying 4% interest compounded annually (no cash payments prior to maturity), calculate the minimum price to set for the zero-coupon bond.

Reference no: EM132661858

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