Question: Please explain how to solve these problems without using excel. A zero coupon bond has a par value of $10,000 and a current price of

Please explain how to solve these problems without using excel.

  1. A zero coupon bond has a par value of $10,000 and a current price of $7,400. If the bond has 8 years to maturity, what is its yield to maturity?

    A. 2.6% B. 2. 9% C. 3.2% D. 3.6% E. 3.8%

  2. A 20-year bond with an 8% coupon rate (paid semi-annually) and $1000 par value for $1080. What is the effective annual yield? A. 7.0% B. 7. 2% C. 7.4% D. 7.6% E. 7.8%

  3. What is the price of a $1000 par value bond that has 16 years to maturity if it has an 8% annual coupon rate paid semiannually and the yield to maturity is 7%?

    A. $1084 B. $1095 C. $1099 D. $1157 E. $1177

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