Azero-coupon bond is a security that pays no interest, and is therefore bought at a substantial discount from its face value. if stated interest rates are 4% annually (with quarterly compounding) how much would you pay today for a zero-coupon bond with a face value of $2,700 that matures in 6 years?

You pay today for a $2124.7

Step-by-step explanation:

Consider the provided information,

Interest rates are 4% annually with a face value of $2,700 that matures in 6 years.

Total number of months = n = 6 × 12 = 72

Interest is 4% annually which can be written as:

i = 0.04/12 = 0.00333...

FV is $2700.

Now, use the formula:

Substitute the respective value in above formula.

On solving the above equation, we get the value of PV is:

Hence, you pay today for a $2124.7

solution:

→c= a b , that is product of a and b is possible only when when a is m × n matrix and b is n × p matrix.

that is, number of columns of a= number of rows of b.

so, size of matrix , c= a b is , if a = (m × n)matrix

b= (n × p)matrix

then a b = [ (m × n)matrix] ×[   (n × p)matrix ]

→→c= a b= [m × p ] matrix

→→size of product a b will be equal to = number of rows of a × number of columns of b

l.jnl.j/n.m,lm,

step-by-step explanation: