Calculate the price of zero coupon bond

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1. Calculate the price of a zero coupon bond that matures in 25 years if the market interest rate is 5.0 percent. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

2. What’s the taxable equivalent yield on a municipal bond with a yield to maturity of 3.2 percent for an investor in the 28 percent marginal tax bracket? (Round your answer to 2 decimal places.)

Reference no: EM131867985

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