Question: 1. How much would you pay for a zero coupon bond with a Face value of $1,000 that matures in 5 years? This bond has

1. How much would you pay for a zero coupon bond with a Face value of $1,000 that matures in 5 years? This bond has a coupon rate of 5%.
2.

  1. PowerTech Company has issued bonds paying a 3% Coupon Rate. The current market price of the bonds are $984.25. What is the Current Yield of the bond?

    2.97%

    3%

    3.05%

    3.14%

    3.

    1. Voyager, Inc. has issued bonds paying a 4% Coupon Rate. The current market price of the bonds are $960. What is the Current Yield of the bond?

      4.17%

      4%

      4.21%

      3.79%

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