What is the fair price for one of Cyberdyne zero coupon bond

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Question - Cyberdyne Systems is issuing a series of zero coupon bonds to raise $500M to fund research and development at its Skynet division. Each bond will have a face value of $1,000 and will mature in 29 years. The yield on the bond is 2%. What is the fair price for one of Cyberdyne's zero coupon bonds?

Reference no: EM132867168

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