Fixed Income Q42

0. The market value of a 20-year zero-coupon bond with a maturity value of $100 discounted at a 15% annual interest rate with semi- annual compounding is closest to:

Answer
Comment
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Option : C
Explanation : FV = 100; PMT = 0; 1/Y = 15/2 = 7.5; N = 20 * 2 = 40; CPT PV = $5.54.

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