What price should you expect to pay for the, Financial Management

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What price should you expect to pay for the

Imagine that you want to buy a zero-coupon bond that will pay $1,000 in one year. If the current interest rate is 5% on comparable bonds, what price should you expect to pay for the bond? Explain your answer in a few sentences and show your calculations if any.

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Financial Management: What price should you expect to pay for the

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