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Business, 09.02.2021 06:20 cicilee49

Mr. Andrews in an investor who is willing to invest some amount in the financial securities for a period of 7 years. Company ZTC is offering a 7 year zero-coupon bond of the face value of $5,000. The yield-to-maturity (YTM) of this zero-coupon bond is 5.00% with semi-annual compounding. Mr. Andrews is really interested in buying this bond and wants to know the maximum current price of this bond he must pay?

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