Find maximum price paid for the bond
Kim Sundaram recently bought a 20-year zero coupon bond that compounds interest semiannually. If the current market rate is 7.75 percent, what is the maximum price he should have paid for this bond?
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Kim Sundaram recently bought a 20-year zero coupon bond that compounds interest semiannually. If the current market rate is 7.75 percent.
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If the current market rate is 8.5 percent and the bonds make annual coupon payments, what is the current market value of one of these bonds?
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