Consider a zero-coupon bond with a $1000 face value and 10 years left until maturity. If the bond is currently trading for $459, then the yield to maturity on this bond is closest to:

A) 9.7%. B) 10.4%. C) 7.5%. D) 8.1%.

A 25 year, $1,000 par value bond has an annual coupon of 8.5%. The bond currently sells for $875. If the yield to maturity remains at its current rate, what would be the bond price 5 years from now?

1)

$839.31

2)

$860.83

3)

$882.90

4)

$904.97

5)

$927.60