Current market interest rate is a nominal

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Contributed by Meenakshi Sundaram, Tennessee Tech University

A zero-coupon bond (coupon rate = 0%) with a face value of $10,000 and maturity date in 5 years is being considered for purchase by Pam. The current market interest rate is a nominal 10%, compounded quarterly. How much should she pay for the bond?

Reference no: EM131807112

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