Hi I think the answer at page 82 Book 5 is not correct. Just wonder if you guys thinks so. Q.11, The value of a 17 year, zero coupon bond with a maturity value of $100,000 and a semi annuual pay yeild of 8.22% is closest to I think I/Y=8.22 instead of 8.22/2=4.11 Am I wrong ?
notice that they also adjust the number of years: 17*2=34
what answer do you get? Is it $25,424.76?
I got 6,816.22. N = 34 i = 8.22 PMT = 0 FV = 100,000
yes, 25,424 to apcarlso: if n=34 --> i = 8.22/2=4.11
I’m right I just checked book 5. N = 34 i = 4.11 PMT = 0 FV = 100,000 or 100,000/(1.0411)^34
I thought it was a semi-annual yield was 8.22%… my mistake