Question: 18- A zero coupon bond has a face value of $1,000 and matures in 55 years. Investors require a(n) 6.2% annual return on these bonds.

18- A zero coupon bond has a face value of $1,000

and matures in 55 years. Investors require a(n) 6.2% annual return on these bonds. What should be the selling price of the bond?

20-Man-zeer Inc., (a Kramer/Costanza joint venture) bonds are currently trading at

$1,087.52. The bonds have a face value of $1,000,

a coupon rate of 10.5% with coupons paid semiannually, and they mature in 15 years. What is the yield to maturity of the bonds?

23-Beam Inc. bonds are trading today for a price of

$866.86. The bond pays annual coupons with a coupon rate of 6.5%

and the next coupon is due in one year. The bond has a yield to maturity of 7.84%.

How many years are there until the bond matures?

24-What is the percentage change in price for a zero coupon bond if the yield changes from

7% to 5%? The bond has a face value of $1,000

and it matures in 17 years. Use the price determined from the first yield, 7%,

as the base in the percentage calculation

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