Question: 1-(a) Consider a bond with a $1,000 face value and a 10 percent coupon rate with semiannual payments matures in 15 years. Determine the value

1-(a) Consider a bond with a $1,000 face value and a

1-(a) Consider a bond with a $1,000 face value and a 10 percent coupon rate with semiannual payments matures in 15 years. Determine the value of the bond to a friend of yours with a required rate of return of 13% (2 points) 1-(b) A zero coupon bond with a risk similar to part (a), is $1,000 and matures in 15 years. Your friend asks you which bond she should invest in, the zero coupon selling for $120. The bond has a face value of bond or the bond in part (a). Which bond do you recommend, and why? (3 points)

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