# You Are Offered A Zero Coupon Bond With A 1000 Face Value And 5 Years Left To

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## Zero Coupon Bond Value - Formula (with Calculator)

**Offer Details: **After 5 years, the bond could then be redeemed for the $100 face value. Example of Zero Coupon Bond Formula with Rate Changes. A 6 year bond was originally issued one year ago with a face value of $100 and a rate of 6%. As the prior example shows, the value at the 6% rate with 5 years remaining would be $74.73. See more ...

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## You are offered a zero coupon bond with a 1000 face value

**Offer Details: **16. You are offered a zero-coupon bond with a $1,000 face value and 5 years left to maturity. If the required return on the bond is 8%, what is the most you should pay for this bond? See more ...

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## FIN Flashcards | Quizlet

**Offer Details: **Oil Well Supply offers 7.5% coupon bonds with semiannual payments and a yield to maturity of 7.68%. The bonds mature in 6 years. What is the market price per bond if the face value is $1,000? See more ...

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## Zero-Coupon Bond - Definition, How It Works, Formula

**Offer Details: **John is looking to purchase a zero-coupon bond with a face value of $1,000 and 5 years to maturity. The interest rate on the bond is 5% compounded semi-annually. What price will John pay for the bond today? Price of bond = $1,000 / (1+0.05/2) 5*2 = $781.20. The price that John will pay for the bond today is $781.20. See more ...

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## Zero Coupon Bond (Definition, Formula, Examples, Calculations)

**Offer Details: **The difference between the current price of the bond i.e. $463.19 and its Face Value i.e. $1000 is the amount of compound interest that will be earned over the 10-year life of the Bond.. Thus Cube Bank will pay $463.19 and will receive $1000 at the end of 10 years i.e. on the maturity of the Zero Coupon Bond thereby earning an effective yield of 8%. See more ...

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## Zero-Coupon Bond - Investopedia

**Offer Details: **Zero-Coupon Bond: A zero-coupon bond is a debt security that doesn't pay interest (a coupon) but is traded at a deep discount, rendering profit at maturity when the bond is redeemed for its full See more ...

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## Study 35 Terms | Money and Banking Chapter 4 part 2

**Offer Details: **If you bought a 10-year, 10% coupon bond with a face value of $1,000 at a price of $950 and sold it back a year later at a price of $990, you would realize the total rate of return of _____. 14.73% Current Yield = Coupon Payment / Bond Price paid = $1000 x 0.1 / $950 = $100/$950 =0.1052 = 10.52% See more ...

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## Ch. 6 Flashcards | Quizlet

**Offer Details: **Consider a zero coupon bond with a $1000 face value and 15 years left until maturity. If the bond is currently trading for $431, then the yield to maturity on this bond is closest to ___ 5.77% See more ...

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## Finance exam 2 Flashcards | Quizlet

**Offer Details: **Today, you want to sell a $1,000 face value zero coupon bond you currently own. The bond matures in 3.5 years. How much will you receive for your bond if the market yield to maturity is currently 6.19 percent? Ignore any accrued interest. Assume semiannual compounding. (a) $896.60 (b) $798.09 (c) $741.08 (d) $756.14 (e) $807.86 See more ...

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## FIN 301 Exam 2 Flashcards | Quizlet

**Offer Details: **Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of €1,000, 23 years to maturity, and a coupon rate of 3.8 percent paid annually. See more ...

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## Calculating Yield to Maturity of a Zero-Coupon Bond

**Offer Details: **Consider a $1,000 zero-coupon bond that has two years until maturity.The bond is currently valued at $925, the price at which it could be purchased today. The formula would look as follows: (1000 See more ...

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## Zero Coupon Bond Calculator - Miniwebtool

**Offer Details: **Zero Coupon Bond Definition. A zero-coupon bond is a bond bought at a price lower than its face value, with the face value repaid at the time of maturity. It does not make periodic interest payments. When the bond reaches maturity, its investor receives its face value. It is also called a discount bond or deep discount bond. Formula. The zero See more ...

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## MCQ with Answers about Bonds and Bonds Value

**Offer Details: **Your broker offers you the opportunity to purchase a bond with coupon payments of $90 per year and a face value of $1000. If the yield to maturity on similar bonds is 8%, this bond should: A) Sell for the same price as the similar bond regardless of their respective maturities. See more ...

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## Practice Quiz on Zero Coupon Bond - 1.Suppose you purchase

**Offer Details: **1.Suppose you purchase a zero coupon bond with a face value of $1,000 and a maturity of 25 years, for $130. If the yield to maturity on the bond remains unchanged, what will the price of the bond be 5 years from now? A) $253.14 B) $232.52 C) $310.41 D) $330.53 E) $500.00 Answer: A 1000 FV, 25 N, -130 PV, CPT I/Y = 2.1%; -130 PV, 5 N, 2.1 I/Y, CPT FV = $253.14 2. See more ...

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## Zero Coupon Bond Value Calculator: Calculate Price, Yield

**Offer Details: **Let's say a zero coupon bond is issued for $500 and will pay $1,000 at maturity in 30 years. Divide the $1,000 by $500 gives us 2. Raise 2 to the 1/30th power and you get 1.02329. If 30-year interest rates are 14% a person would only need to spend $17,257.32 to buy a $1,000,000 face-value zero coupon bond. With interest rates at 3% that See more ...

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## Zero-Coupon Bond Definition & Example - Investing Answers

**Offer Details: **The price of a zero-coupon bond can be calculated by using the following formula: P = M / (1+r) n where: P = price M = maturity value r = investor's required annual yield / 2 n = number of years until maturity x 2 For example, if you want to purchase a Company XYZ zero-coupon bond that has a $1,000 face value and matures in three years, and you would like to earn 10% per year on the investment See more ...

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## Treasury STRIPS Definition

**Offer Details: **For instance, a 10-year bond with a $40,000 face value and a 5% annual interest rate can be stripped. Assuming it originally pays coupons semi-annually, 21 zero-coupon bonds can be created See more ...

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## You are offered a zero-coupon bond with a $1,000 face

**Offer Details: **You are offered a zero-coupon bond with a $1,000 face value and 7 years left to maturity. If the required return on the bond is 8.13%, what is the most you should pay for this bond? a. $578.60 b. $789.50 c. $1000.00 d. $1540.10 See more ...

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## Calculation of the Value of Bonds (With Formula)

**Offer Details: **A 5-year bond of Rs. 1,000 face value and 6% interest has a market value of Rs. 883.40, find its yield. A bond is an instrument of debt and resembles a promissory note. It may be issued either By the Government or by a private institution. There are some important aspects of a bond. Face Value: See more ...

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