A strip bond will pay $10,000 when it comes due in 15 years.
What is the price of the bond if the yield is to be 9% per annum compounded annually?
My question is, what equation should I use. I looked on line to get some information on strip bonds and found the equation: Price = R/(1+zi) and I also saw one for P = A(1+i)^-n It gives the present amount P dollars that will acumulate to A dollars over a period of n years when earning interest at an annual rate i.
I would appreciate some direction.