Crystal Clear Inc.is undertaking a new investment opportunity and would like to issue bonds to fund the project.The bonds would be 30-year zero-coupon bonds with a $1,000 face value,and 100 bonds will be issued.If the bonds are to yield 7%,how much will Crystal Clear receive when the bonds are issued?

Question

Quizplus · Accepted Answer

Price = 11ea7fdb_fbfa_e31d_a768_25bb457f8a39_TB2902_11 Price = 11ea7fdb_fbfa_e31e_a768_6fb0a9f32bd5_TB2902_11 = $13,136.71
Using a financial calculator:
N = 30, I/Y = 7, PMT = 0, FV = -100,000, CPT PV = $13,136.71