Question: 13) A 8 year zero coupon bond with a face value of $1,000 is currently selling for $848.23. What is the expected price 1 year

13) A 8 year zero coupon bond with a face value of $1,000 is currently selling for $848.23. What is the expected price 1 year from now if the interest rates stay constant?

Group of answer choices

$848.23

$267.98

$979.63

$865.86

14)What is the quoted price for a 7 year annual bond that has a coupon of 7.4%? The face value is $1,000 the expected yield to maturity is 7.12%.

Group of answer choices

$617.88

$1,021.97

$1,015.03

$1,025.48

$397.14

15)What is the YTM for a 10 year semi-annual bond that has a coupon of 6.7%? The face value is $1,000 the current price is $767.87.

Group of answer choices

10.57%

2.68%

-2.51%

11.49%

10.78%

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!