What is the current price of a zero-coupon bond with a 6 percent yield to maturity that matures in 15 years?
A) $4.17
B) $41.27
C) $417.27
D) $4,172.00
E) $41,720.00

Question

Quizplus · Accepted Answer

The price of a zero-coupon bond can be calculated using the formula: 
Price = Face Value / (1 + Yield to Maturity) ^ Time to Maturity 
In this case, the face value is not given, but we can assume it is $1,000 for simplicity. 
So, substituting the values: 
Price = $1,000 / (1 + 0.06) ^ 15 
Price = $417.27 
Therefore, the current price of the zero-coupon bond is $417.27. The correct choice is C.

What Is the Current Price of a Zero-Coupon Bond with a 6