Question: 1. There is a zero coupon bond with a face value of $1,000 that will mature in 6 years. If it has a price of

1. There is a zero coupon bond with a face value of $1,000 that will mature in 6 years. If it has a price of $800.00 today, what is its yield to maturity? Be sure to clearly set up this problem and do the mathematical computations to generate the answer.

2. What is the value or price today of a $1,000 face value 5% coupon rate bond that pays interest annually and matures in 10 years which has a yield to maturity of 5%. Be sure to clearly set up this problem and do the mathematical computations to generate the answer.

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