Explore BrainMass

Explore BrainMass

    What would you pay for a zero coupon bond discounted at 7% over remaining 9 years

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    What price would an investor pay for a $10,000 zero coupon corporate bond if it were disounted at 7% over its remaining life of nine years?

    © BrainMass Inc. brainmass.com December 24, 2021, 4:56 pm ad1c9bdddf

    Solution Preview

    Interest Rate 7% per annum
    Remaining Life 9 years
    Future Value of bond $10,000
    No Coupon payments

    Using FC200 Casio ...

    Solution Summary

    The response shows the calculation using a financial calculator, and secondly, using a formula. The zero coupon bond discounted is found over the remaining life of nine years is found.