Homework Question help Needed

Business & Finance
Tutor: None Selected Time limit: 1 Day

A zero coupon bond has a face value of $1,000 and matures in 4 years. Investors require a (n) 6.1% annual return on these bonds. What should be the selling price of the bond? (Round to the nearest cent)

Jul 1st, 2015

Thank you for the opportunity to help you with your question!

=1000(1+0.061/4)^4

therefore,=1000(1.01525)^4

=$1227

Please let me know if you need any clarification.Please best my answer, I'm always happy to answer your questions.
Jul 1st, 2015

states this answer is incorrect

Jul 1st, 2015

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