Solved: A zero-coupon bond is a security that pays no interest and, Operation Management

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A zero-coupon bond is a security that pays no interest and

A zero-coupon bond is a security that pays no interest, and is therefore bought at a substantial discount from its face value.

If the interest rate is 7% with annual compounding how much would you pay today for a zero-coupon bond with a face value of $2,100 that matures in 9 years?

Please round your answer to the nearest cent.

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Operation Management: A zero-coupon bond is a security that pays no interest and

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