What is the current value of this bond

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Reference no: EM131978256

Diane Carter is interested in buying a five-year zero coupon bond with a face value of $1,000. She understands that the market interest rate for similar investments is 9.47 percent. Assume annual coupon payments. What is the current value of this bond? (Round intermediate calculations to 5 decimal places, e.g. 1.25145 and final answer to 2 decimal places, e.g. 15.25.)

Reference no: EM131978256

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