Answer:
Zero-cupon bond= $73.33
Explanation:
Giving the following information:
You are purchasing a 30-year, zero coupon bond. The yield to maturity is 9.1% and the face value is $1,000.
To calculate the price of the bond, we need to use the following formula:
Zero-cupon bond= [face value/(1+i)^n]
Zero-cupon bond= [1,000 / (1.091^30)]
Zero-cupon bond= $73.33
