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Homework answers / question archive / What is the value of a zero coupon bond with YTM of 8% and 5 years to maturity?
What is the value of a zero coupon bond with YTM of 8% and 5 years to maturity?
Value of ZCB = Face Value / (1+r)^n
r = 0.08
n = 5 years
= 1000 / (1+0.08)^5
= 680.58
