A zero coupon bond is a bond that is sold now at a discount and will pay its face value when it matures. No interest payments are made.

Use this information for the questions below.

Question $1$

$50$ pts

Use the Zero Coupon Bond information above to answer this question.

A zero coupon bond with a face value of $$23,000$ matures in $24$ years. What should the bond be sold for now if its rate of return is to be $2\mathrm{.}739\%$ compounded annually?

Round to the nearest dollar.

Question $2$

$50$ pts

Use the Zero Coupon Bond information above to answer this question.

You buy a zero coupon bond with a face value of $$13,000$ that matures in $24$ years for $$8,000.$ What is your annual compound rate of return?

$\%.$ Round to the nearest thousandths of a percent $(3$ decimal places$).$