Business: What is the percentage return (interest rate) an investor will receive if they purchase a zero-coupon bond today for $954.70 that will mature in one year and pay $1,000 at maturity?

What is the percentage return (interest rate) an

Ответ:

KpopJess

20.01.2022

Business

Interest rate = 4.75% (approx)

Explanation:

Given:

Face value of bond = $1,000

Present value of bond = $954.70

Interest rate = ?

Computation of Interest rate :

$Interest rate = [\frac{Face value of bond}{Present value of bond}-1] \times 100\\$

$Interest rate = [\frac{1,000}{954.70}-1] \times 100\\\\Interest rate = [1.04744946-1] \times 100\\Interest rate = [0.04744946] \times 100\\= 4.744946$

Interest rate = 4.744946%

Interest rate = 4.75% (approx)

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Ответ:

lilpump3506

15.04.2023

Business

Not sure what the options for the answer are (if there are any), but an appropriate entry in this box is "common goals," among other answers. Please let me know if you have any questions and provide me with the answer options if there are any.

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What is the percentage return (interest rate) an investor will receive if they purchase a zero-coupon bond today for $954.70 that will mature in one year and pay $1,000 at maturity?

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