EasyFinanceAcceptance 63%

Zero-Coupon Bond Price

Goldman SachsPIMCO

A zero-coupon bond pays $100 in 1 year. With continuously-compounded rate r = 5%, what is its price today? (Round to 2 decimals.)

Approach

Price = face × $e^{-rT}$ .

Answer

Show the final answer

The answer is 95.12. Sign in free for the full worked solution and to check your own answer.