Xyz corporation has just issued a 10 year zero-coupon bond


XYZ Corporation has just issued a 10 year, zero-coupon bond with a yield to maturity of 5% annually. Assume that the bond has a par value of $1,000.

a) What is the current price of the bond at issuance?

b) What would the price of the bond at issuance be if the yield to maturity was 7%?

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Financial Management: Xyz corporation has just issued a 10 year zero-coupon bond
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