A pure discount or zero-coupon government bond is issued


A pure discount (or zero-coupon) government bond is issued today that promises to pay $10,000 in 5 years. If the current interest rate on similar bonds is 6%, what is the price of the bond? Recall that the compounding interval for bonds is 6 months.

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Financial Management: A pure discount or zero-coupon government bond is issued
Reference No:- TGS0984704

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