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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 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.

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

Using FC200 Casio ...

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