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Zero-coupon bond with par value

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Reference no: EM133306368

Question

You find a zero-coupon bond with a par value of $10,000 and 17 years to maturity. If the yield to maturity on this bond is 4.2 percent, what is the price of the bond? What is the current yield? Assume semiannual compounding periods. (Hint: Current Yield = annual coupon payment / current price of bond).

Reference no: EM133306368

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