What is the issue price of a zero coupon bond with 15 years to maturity if it is sold to yield 7.55%?
A) $250.00
B) $362.31
C) $335.62
D) $1,000.00

Name: What is the issue price of a zero coupon bond with 15 years to maturity if it is sold to yield 7.55%? A) $250.00 B) $362.31 C) $335.62 D) $1,000.00
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Question

Quizplus · Accepted Answer

The issue price of a zero coupon bond is calculated using the formula: Price = Face Value / (1 + yield)^n. Assuming a face value of $1,000, the price is $1,000 / (1 + 0.0755)^15 = $335.62.

What Is the Issue Price of a Zero Coupon Bond