Question: 1. What would be the initial offering price for the following bonds (assume $1,000 par value and semiannual compounding)? Do not round intermediate calculations. Round

1.

What would be the initial offering price for the following bonds (assume $1,000 par value and semiannual compounding)? Do not round intermediate calculations. Round your answers to the nearest cent.

a. 13-year zero-coupon bond with a yield to maturity (YTM) of 10%.

$

b. 23-year zero-coupon bond with a YTM of 8%.

$

Please answer a and b thanks.

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