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Compute what is the price of a zero coupon bond

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Reference no: EM132740827

Problem 1: Assuming semi-annual compounding, what is the price of a zero coupon bond that matures in 3 years if the market interest rate is 5.5 percent? Assume par value is $1000. Most importantly, please provide the formula used to solve this problem and instructions for using the formula so that a complete novice would be able to replicate answers.

Reference no: EM132740827

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