Question: 1) Consider a Zero Coupon bond that matures in 1 year and has a $1000 face value. The Bond is currently priced to yield 5%.
1) Consider a Zero Coupon bond that matures in 1 year and has a $1000 face value. The Bond is currently priced to yield 5%. What is the price you would pay today?
2) Consider a 6% Coupon Bond (Paid Annually) that matures in 1 year and has a $1000 face value. The Bond is currently priced to yield 8% compounded annually. What is the price you would pay today?
3) Consider a 6% Coupon Bond (Paid Semi-Annually) that matures in 1 year and has a $1000 face value. The bond is currently priced to yield 8% compounded semi-annually. What is the price you would pay today?
4) $1000 Face Value 7% Coupon Bond (Paid Semi-Annually) matures in 4 years. If the bond is selling for $1025.46, what is the yield to maturity?
5) $1000 Face Value 7% Coupon Bond (Paid Semi-Annually) matures in 4 years. If the bond is selling for $1000.00, what is the yield to maturity?
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