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What is the current price for a bond?
A zero coupon bond has maturity of 10 yrs, PAR value at maturity is RM1.0mil, the current yield for the bond is 7.3%.  



A. RM494,313.8
B. RM158,325.6
C. RM888,654.3
D. RM432,225.0

This question is part of IPPC101a
Asked by Cgan, Last updated: Dec 18, 2019

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1 Answer

John Smith

John Smith

Answered Mar 17, 2017

RM494,313.8

We know M=1.0mil, n=10, r =7.3% Hence, P = (M) / (1+ r)n = 1.0mil / (1+ 0.073)^10 Price=RM494,313.85 r = 5.92%
 

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