Compute the price of the zero-coupon debt

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On Dec. 31, 2040, Tristar Aero Dynamics, Inc. ("TAD") has issued a three-year note with a face value of $1,000 and no interim coupon payment. The yield to maturity for the firm's debt capital is 10%. Compute the price of the zero-coupon debt on Dec. 31, 2040. In addition, find interest expenses and the balance of the debt principal to be reported at the end of each year, 2041 through 2043.

Reference no: EM133254037

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