Suppose you purchase a $800 Face-Value Zero-Coupon Bond with maturity 28 years and yield to maturity 4% quoted with annu
Posted: Wed Jul 06, 2022 6:41 pm
Suppose you purchase a $800 Face-Value Zero-Coupon Bondwith maturity 28 years and yield to maturity 4% quoted withannual compounding. Show the bond cash flows on a time line andcompute the current price of the bond. Draw a graph to illustratehow the price of this bond will change as it gets closer tomaturity – Price (on y axis) vs Time (on x axis).Please show what formula you woulduse.