[Solved] On May 1,2016,Bo Smith,proud Father of Newborn Son Bobo,purchased $200,000

Question 94
Essay

On May 1,2016,Bo Smith,proud father of newborn son Bobo,purchased $200,000 in zero-coupon bonds that mature on May 1,2036.The bonds pay no interest during the period of time they are outstanding.The interest rate for such borrowings is at 9%.Interest compounds annually.
Required: Calculate the price Bo paid for the bonds.

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