On May 1, 2018, Joe 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 Joe paid for the bonds.

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The Answer of On May 1, 2018, Joe 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 Joe paid for the bonds.

On May 1, 2018, Joe Purchased $200,000 in Zero-Coupon Bonds