Suppose you purchase a zero coupon bond with a face
value of $1,000, maturing in 22 years, for $215.30. 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, 22 N, -215 PV, CPT I/Y = YTM = 8.3%; Year 1 interest = $215 x .012 = $17.11
Question state $215.30 not $215. Did you read question?
Sorry. ...sir I calculate in a hurry....thats why missed that.....only just put 0.30.....calculation is correct
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