ncial cakalater caleulated You designed nsing ca IA3 3etof problems 13 de s to b

Question

ncial cakalater caleulated You designed nsing ca IA3 3etof problems 13 de s to be the Excel or financial calculator. You can albo uze algebraic a formulas. Do not use financial tables to calculate these problema. Question 1 (1 point) Marco Chip. Inc just issued zero-coupon bonds with a par value of $1.000. The bond has a maturity of 15 years and a yield to maturity of 804 percent, compounded semi-annually What is the current price of the bond? Round the answer to two decimal places. Your Answer: Answer Save Page 1 of 4 Next Page Save All Responses Go to Submit Quiz

Explanation / Answer

FV = 1000 ,I = 8.04% /2 = 4.02% and N = 15*2 = 30

Price of bond = FV / (1+I)^N

= 1000 / (1+4.02%)^30

= 306.55

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