Emmett Corporation Has Issued a $1,000 Face Value Zero-Coupon Bond

Multiple Choice

Emmett Corporation has issued a $1,000 face value zero-coupon bond. Which of the following values is closest to the correct price for the bond if the appropriate discount rate is 4% and the bond matures in 8 years?

A) $644.61
B) $869.32
C) $1,000.00
D) $1,058.00
E) This problem cannot be worked without the annual interest payments provided