Question: Suppose you are working in an investment company as a Financial Analyst. Your company wants to invest in zero- Suppose you are working in an investment company as a Financial Analyst. Your company wants to invest in zero-coupon bonds of Pak Steels Limited. These bonds have a face value of Rs.2000 per bond and have five years to maturity. If your company decided to have a 10% p.a return on this investment, then what price would you recommend per bond to purchase these zero-coupon bonds of Pak Steels Limited?

Answer: Use the present value formula 1/(1+i)**n\n\nAnswer is 1241.84
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