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

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    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?

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    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.