1. A. What is the price of a zero-coupon bond with a par value of $10000 and a 10 year maturity, when investors expect a return of 6.5%? B. What would the price be if the economic outlook appears weaker and investors are now willing to accept a rate of return of 3.5%?

Answer rating: 100% (QA)

A To calculate the price of a zerocoupon bond we can use the formula Pric... View the full answer