Using semi-annual compounding, a 15-year zero-coupon bond that has a par value of $1,000 and a required return of 8% would be priced at approximately

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The price of a zero-coupon bond is calculated using the formula: Price = Par Value / (1 + r/n)^(nt), where r is the annual interest rate, n is the number of compounding periods per year, and t is the number of years. For this bond: Price = $1,000 / (1 + 0.08/2)^(2*15) = $1,000 / (1.04)^30 ≈ $308.

Using Semi-Annual Compounding, a 15-Year Zero-Coupon Bond That Has a Par