A$11$

$fx$

Oculi Technology, a space exploration and tourism business, currently has two bonds in the market: a regular bond and a zero$-$coupon $($no coupon payment during the bond's life$).$ The market is a bit volatile; as such, you are tasked to address some questions and make recommendations on the effect of market volatility on their respective bonds. Based on credit analysts following Ocul's performance and project, the company has a AA rating. Both bonds have $20-$years until maturity. Assume a semiannual compounding in your assessment. Address the following. AAA ratings offer $9\mathrm{.}6\%$; AA ratings offer $10\mathrm{.}5\%$; A ratings offer $10\mathrm{.}95\%.$

B$.$ Similarly, the company is curious about the market price of its zero$-$coupon bond. Determine the price today.

C$.$ Based on your analyses, how much cash would Oculi Technology pay as interest expenses for the regular and zero$-$coupon bond per year and the remaining life of the bond?

D$.$ Compute the price of both bonds $10$ years ago when both were issued.

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E$.$ Based on your assessment, what recommendations would you make to Oculi regarding the effect of market volatility on both bonds?