Question: Attempts Keep the Highest / 10 1. Problem 12-04 ER eBook Problem 12-04 The Shamrock Corporation has just issued a $1,000 par value zero-coupon bond

Attempts Keep the Highest / 10 1. Problem 12-04 ER eBook

Attempts Keep the Highest / 10 1. Problem 12-04 ER eBook Problem 12-04 The Shamrock Corporation has just issued a $1,000 par value zero-coupon bond with an 5% yield to maturity, due to mature 16 years from today (assume semiannual compounding). Do not round intermediate calculations. Round your answers to the nearest cent. a. What is the market price of the bond? $ b. If interest rates remain constant, what will be the price of the bond in two years? $ c. If interest rates rise to 8%, what will be the price of the bond in two years? $

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