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    International Financial Management
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    Exam 7: International Bond Market
  5. Question
    ZZZ CorpWants to Issue Zero-Coupon Bonds with a 10-Year Maturity
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ZZZ CorpWants to Issue Zero-Coupon Bonds with a 10-Year Maturity

Question 3

Question 3

Essay

ZZZ Corp.wants to issue zero-coupon bonds with a 10-year maturity.The implied yield to maturity on these bonds is 5% and ZZZ Corp.wants to raise $10,000,000.(Assume no transaction costs).How much money will ZZZ Corp.have to pay at maturity of the bond?

Correct Answer:

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