Question: (1 point) (Exercise 6.1) Find the price which should be paid for a zero coupon bond that matures for $2000 in 16 years to yield:

(1 point) (Exercise 6.1) Find the price which should be paid

(1 point) (Exercise 6.1) Find the price which should be paid for a zero coupon bond that matures for $2000 in 16 years to yield: a) 101% effective. ANSWER = $ b) 91% effective. ANSWER = $ c) Thus, a 10\% reduction in the yield rate causes the price to increase by what percentage? ANSWER = $

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