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Consider a zero-coupon bond with a $1000 face value and 10 years left until maturity with annual compounding. If the YTM of this bond is 10.4%, then the price of this bond is closest to:

Respuesta :

Tundexi

Answer:

$372

Explanation:

FV = 1000

Ytm=10.4%=0.104

N=10

Compute FV

FV=X(1+i)^-n

FV=1000(1+0.104)^-10

FV=1000(1.104)^-10

FV= 1000(0.3717)

FV=371.799

FV=372

The price closest to the bond is $372

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