Fair price for one of cyberdynes zero coupon bonds

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Cyberdyne systems is issuing a series of zero coupon bonds to raise $500M to fund research and development at its signet division. Each division will have a face value of $1,000 and will mature in 19 years. The yield on the bond is 7%. What is the fair price for one of cyberdynes zero coupon bonds?

Reference no: EM132643833

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