Problem 8-7 Zero Coupon Bonds
You find a zero coupon bond with a par value of $5,000 and 20 years to maturity. If the
yield to maturity on this bond is 4.6 percent, what is the dollar price of the bond?
Assume semiannual compounding periods. (Do not round intermediate calculations
and round your answer to 2 decimal places, e.g., 32.16.)
? Answer is complete but not entirely correct.
Bond price
$
2,451.27