What is the value of your investment

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Reference no: EM132073908

1. A zero-coupon bond is a security that pays no interest, and is therefore bought at a substantial discount from its face value. If stated interest rates are 4% annually (with quarterly compounding) how much would you pay today for a zero-coupon bond with a face value of $2,700 that matures in 6 years?

2. You deposit $300 in a bank account that pays 6% stated annual interest compounded quarterly. What is the value of your investment at the end of 10 years?

Please round your answer to the nearest cent.

Reference no: EM132073908

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