Problem 7.09 – Price of a Zero-Coupon Bond with Semiannual Compounding

Fundamentals of Corporate Finance

Ross, Westerfield, and Jordan

13th Edition

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You discover a zero-coupon bond that has a certain par value and a specific number of years until maturity. The yield to maturity on this bond is given as a percentage. Calculate the dollar price of the bond, assuming semiannual compounding periods.

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