Suppose you purchase a zero coupon bond with a face
value of $1,000, maturing in 22 years, for $215.00. Zero coupons pays the
investor the face value of the maturity date. What is the implicit interest in
the first year of the bonds life?
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1000 FV, 25 N, -180 PV, CPT I/Y = YTM = 7.1%; Year 1 interest
= $180 x .071 = $12.78
correct answer was 17.11
yes you are right......sorry.....plz wait
plz wait...i made a mistake in calculation......thanks
my time is running out on the question friend
ok....just sending you
1000 FV, 22 N, -215 PV, CPT I/Y = YTM = 8.3%; Year 1 interest
= $215 x .012 = $17.11
1000 FV, 22 N, -215 PV, CPT I/Y = YTM = 8.3%; Year 1 interest = $215 x .012 = $17.11
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