Carla Vista Real Estate Company management is planning to fund a development project by issuing 10-year zero coupon bonds with a face value of $1,000. Assuming semiannual compounding, what will be the price of these bonds if the appropriate discount rate is 11.6 percent? (Round answer to 2 decimal places, e.g. 15.25.)

    Face Value of Bond = $1,000

    Time to Maturity = 10 year

    Discount Rate = 11.60% semi-annually

    EAR = (1 + 0.116/2)2 – 1

    EAR = 11.936%

    Present Value of Zero Coupon Bond = 1000/(1.11936)10

    Present Value of Zero Coupon Bond = $323.82