Why would an investor be willing to buy zero coupon bond

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Reference no: EM131318963

There is a zero coupon bond currently priced at $521.58. This bond has a par value of $1000 and matures in 9 years.

A. What is the yield to maturity of this bond?

B. Why would an investor be willing to buy a zero coupon bond if there is no interest paid during the investment period?

Reference no: EM131318963

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