Calculate the present value of zero-coupon bond


A financial adviser has just given you the following advice: "Long -term bonds are a great investment because their interest rate is over 20%." Is the financial adviser necessarily right? Calculate the present value of a $1,000 zero-coupon bond with five years to maturity if the yield to maturity is 6%.

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Microeconomics: Calculate the present value of zero-coupon bond
Reference No:- TGS075493

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