Based on the number of years till maturity and the required rate of return, the price of the zero-coupon bond is $852.22.
what price is the zero coupon bond selling at?
When a bond's par value is not given, assume it is $1,000.
the price of a zero coupon bond is:
= par value / (1 + rate) ^ number of years till maturity
solving gives:
= 1,000 / (1 + 3.25%)⁵
= 1,000 / 1.17341139582939453125
= $852.22
find out more on zero coupon bonds at https://brainly.com/question/23821872.
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