Homework #4E (zero-coupon bond)

Homework #4E (zero-coupon bond)

Finance

Question 4 (1 point)

 

23 years ago, Blue Lake Corp. issued 30 year to maturity zero-coupon bonds with a par value of $5,000. The current interest rate on this type of bond is 8.76 percent, compounded annually. What is the current price of the bond?

Round the answer to two decimal places.

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