1 what is the current value of a zero-coupon bond that pays, Ask an Expert

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1. What is the current value of a zero-coupon bond that pays a face value of $1,000 at maturity in 9 years if the appropriate discount rate is 5%.

2. What interest rete is implicit in a $1,000 par value zero-coupon bond that matures in 6 years if the current price is $580

Please specify your answer in decimal terms and round your answer to the nearest thousandth.

3. True or False. Provide at least five sentences of Explanations or calculation. An investor purchased an NCD a year ago in the secondary market for $985,000. He redeems it today and receives $1,000,000. He also receives interest of $38,000. The investor's annualized yield on this investment is 5.38%.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92781824

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