Assuming semiannual compounding, a 20-year zero coupon bond with a par value of $1,000 and a required return of 12% would be priced at ________.

Name: Assuming semiannual compounding, a 20-year zero coupon bond with a par value of $1,000 and a required return of 12% would be priced at ________.
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Quizplus · Accepted Answer

PV₀= 1,000 11eaaae8_8b5c_552b_a4b8_dbbceb2535ea_TB6474_11 = 97 Calculator entries are N = 40, I/Y = 6, PMT = 0, FV = 1,000, CPT PV → −97.22

Assuming Semiannual Compounding, a 20-Year Zero Coupon Bond with a Par