On May 1, 2018, Bo Smith, proud father of newborn son Bobo, purchased $200,000 in zero-coupon bonds that mature on May 1, 2038. The bonds pay no interest during the period of time they are outstanding. The interest rate for such borrowings is at 9%. Interest compounds annually.
Required: Calculate the price Bo paid for the bonds.

Question

Quizplus · Accepted Answer

The Answer of On May 1, 2018, Bo Smith, proud father of newborn son Bobo, purchased $200,000 in zero-coupon bonds that mature on May 1, 2038. The bonds pay no interest during the period of time they are outstanding. The interest rate for such borrowings is at 9%. Interest compounds annually.
Required: Calculate the price Bo paid for the bonds.

On May 1, 2018, Bo Smith, Proud Father of Newborn