Combined market value of the zero coupon bonds today


Problem:

Three years ago, the firm issues 300,000 30 year, zero coupon bonds. The bonds have a face value of $1,000 and originally sold for $76.45. Currently, the bonds sell for $97.61.

What is the combined Market Value of the Zero Coupon Bonds today?

What is the Yield on the Zero Coupon Bonds. Remember = these are 30 year bonds but were issued THREE years ago (hint-what is "n"?)

Solution Preview :

Prepared by a verified Expert
Finance Basics: Combined market value of the zero coupon bonds today
Reference No:- TGS02055950

Now Priced at $25 (50% Discount)

Recommended (98%)

Rated (4.3/5)