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A 5-Year Zero-Coupon Bond Was Issued with a $1,000 Par

Question 68

Multiple Choice

A 5-year zero-coupon bond was issued with a $1,000 par value to yield 8%. What is the approximate market value of the bond? Use time value of money table in Appendix B.


A) $597
B) $681
C) $275
D) $482

Correct Answer:

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