Question: 1. You find a zero coupon bond with a par value of $10,000 and 30 years to maturity. The yield to maturity on this bond
1. You find a zero coupon bond with a par value of $10,000 and 30 years to maturity. The yield to maturity on this bond is 5.2 percent. Assume semiannual compounding periods. What is the dollar price of the bond?
2. Yan Yan Corporation has a $10,000 par value bond outstanding with a coupon rate of 4.7 percent paid semiannually and 9 years to maturity. The yield to maturity on this bond is 4.4 percent. What is the dollar price of the bond?
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