Homework #4E (zero-coupon bond)

Homework #4E (zero-coupon bond)


Question 2 (1 point)


Black Water Corp. just issued zero-coupon bonds with a par value of $1,000. The bond has a maturity of 20 years and a yield to maturity of 13.76 percent, compounded annually. What is the current price of the bond?

Round the answer to two decimal places.

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