What would be the initial offering price for the following bonds (assume semiannual compounding)? a. A 15-year

Question:

What would be the initial offering price for the following bonds (assume semiannual compounding)?
a. A 15-year zero-coupon bond with a yield to (YTM) of 12 percent
b. A 20-year zero-coupon bond with a YTM of 10 percent

Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...