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19 January, 02:42

Rc inc. just issued zero-coupon bonds with a par value of $1,000. if the bond has a maturity of 15 years and a yield to maturity of 10%, what is the current price of the bond if it is priced in the conventional manner?

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  1. 19 January, 05:39
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    The current price of the bond is $239.39 (1000 / (1+10%) ^15) if it is priced in a conventional manner. The current price of the bond can be calculated by using the present value formula. The present value formula is the current value of something that affected by a discount rate. The formula of present value is stated as PV=FV / (1+i) ^n where PV is the present value, FV is the future value, i is the interest rate, and n is the specific period of the interest paid.
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Home » Business » Rc inc. just issued zero-coupon bonds with a par value of $1,000. if the bond has a maturity of 15 years and a yield to maturity of 10%, what is the current price of the bond if it is priced in the conventional manner?
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