JessicaLao376 JessicaLao376
  • 21-02-2020
  • Business
contestada

Arts and Crafts Warehouse wants to issue 15-year, zero-coupon bonds that yield 7.5 percent. What price should it charge for these bonds if the face value is $1,000? Assume semiannual compounding.

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Cutiepatutie
Cutiepatutie Cutiepatutie
  • 21-02-2020

[tex]PV=\frac{1,000}{1+\frac{.075}{2}^{2*15} } =331.40[/tex]

They should charge $331.40 for these bonds if the face value is $1,000.

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