You have the option of purchasing a $1,000, 6% coupon bond with interest payable semiannually and a remaining term of 10 years, or an annually compounded $1,000, zero coupon bond with a remaining term of 10 years. The nominal market yield is 8% for both bonds, what would you pay for each bond ($1,000 face value)?

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The Answer of You have the option of purchasing a $1,000, 6% coupon bond with interest payable semiannually and a remaining term of 10 years, or an annually compounded $1,000, zero coupon bond with a remaining term of 10 years. The nominal market yield is 8% for both bonds, what would you pay for each bond ($1,000 face value)?

You Have the Option of Purchasing a $1,000, 6% Coupon