The bond has a maturity of 26 years and a yield to maturity


This set of problems is designed to be calculated using the Excel or financial calculator. You can also use algebraic formulas. Do not use financial tables to calculate these problems.

Black Water Corp. just issued zero-coupon bonds with a par value of $1,000. The bond has a maturity of 26 years and a yield to maturity of 13.23 percent, compounded annually. What is the current price of the bond?

Round the answer to two decimal places.

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Risk Management: The bond has a maturity of 26 years and a yield to maturity
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