Many years ago topnotch knives issued a zero coupon bond, Finance Basics

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Many years ago topnotch knives issued a zero coupon bond

Many years ago, Topnotch Knives issued a zero coupon bond with a $1,000 face value. The bond matures in three years. If the current market rate on similar bonds is 11 percent,

(a) what is the bond's current value? Suppose the market rate stays at 11 percent for the next three years. What

(b) current yield and

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Finance Basics: Many years ago topnotch knives issued a zero coupon bond

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Finance Basics: Many years ago topnotch knives issued a zero coupon bond

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