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Zero Coupon Bond Price Calculate the Price of a Zero

Question 65

Multiple Choice

Zero Coupon Bond Price Calculate the price of a zero coupon bond that matures in five years if the market interest rate is 7.50 percent.(Assume semi-annual compounding and $1,000 par value.)


A) $692.02
B) $696.57
C) $962.50
D) $1,000.00

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