alleryStart learning →A zero-coupon bond of face Rs 1,000 matures in 5 years. At 10% yield, its price is closest to?
ARs 500
BRs 621
CRs 909
DRs 667
Answer & Solution
Correct answer: B. Rs 621
With no coupons the price is 1,000 divided by 1.1 raised to 5, which is 1,000 / 1.61051, about Rs 621.
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