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A zero-coupon bond is a security that pays no interest, and is therefore bought at a substantial discount from its face value. If stated interest rates are 11% annually (with continuous compounding) how much would you pay today for a zero-coupon bond with a face value of $2,600 that matures in 7 years?
The post FINANCE 191 – A zero-coupon bond is a security that pays no interest, and is therefore bought appeared first on Sigmapapers.info.
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