Find the face value of the 20-year zero-coupon bond at 4.4%, compounded semiannually, with a price of $8,375. $45.000
$53.000

The correct face value will be Option C ($20,000). A further solution id provided below.

Given:

Time,

t = 20 years

Rate,

r = 4.4%

Price

= $8,375

Now,

The yield will be:

=

= (%)

Time will be:

=

=

As we know the formula,

⇒

By substituting the values, we get

The face value will be:

                           ($)

Learn more about face value here:

see below

step-by-step explanation:

x+2> 6

subtract 2 from each side

x+2-2 > 6-2

x > 4

there is an open circle at 4 since is it is greater than and the line goes to the right

is this the complete