Price of a one-year zero
A zero-coupon bond pays $100 in one year. If the annual discount rate is 5%, what is its price today (in dollars)? Give a decimal to two places.
Show hints (2)+
- Price = face / (1 + r).
- $100/1.05$.
Answer
Reveal answer →Final answer
95.24 (± 0.05)
Want the full step-by-step worked solution? It's part of Premium — along with a worked solution for every question in the bank.
Asked at: Citadel, Flow Traders