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A zero coupon bond with a 1000 par value and a maturity of

A zero coupon bond with a $1,000 par value and a maturity of 8 years has a yield-to-maturity of 12%. What is the current price? If the yield-to-maturity remains constant, what will be the bond's price 7 years before maturity? One year before maturity?

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Finance Basics: A zero coupon bond with a 1000 par value and a maturity of

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