Assuming semiannual compounding, what is the price of a zero coupon bond

jagguarpaw January 17, 2017 0 Comments

Question: Assuming semiannual compounding, what is the price…?

 

Assuming semiannual compounding, what is the price of a zero coupon bond with 21 years to maturity paying $1,000 at maturity if the YTM is (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.):

 

Price of the Bond
a. 6 percent $
b. 9 percent $
c. 12 percent                                  $