How to find value of zero-coupon bond?, Financial Management

Illustration 

Find out the value of zero-coupon bond when maturity value is Rs.1,00,000, discounting rate is 12%, and the period is 25. 

Then,     V    =  1548_zero coupon bond.png  

                  = 1,00,000 x 0.059

                  = Rs.5,900.

Posted Date: 9/10/2012 5:57:08 AM | Location : United States







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