Suppose a company issues a zero-coupon bond

Reference no: EM131030519

Suppose a company issues a zero-coupon bond that pays $2,000 in a year's time. The company issues a low-risk bond that competes with saving accounts offered by banks. Assume banks offer the interest rate of 2%. Price of this bond is equal to...?

Reference no: EM131030519

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Suppose a company issues a zero-coupon bond : Suppose a company issues a zero-coupon bond that pays $2,000 in a year's time. The company issues a low-risk bond that competes with saving accounts offered by banks. Assume banks offer the interest rate of 2%. Price of this bond is equal to...?

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