Question: Please show your work and help me understand how to get the correct answers. 1. A zero coupon bond has a term to maturity of

Please show your work and help me understand how to get the correct answers.

1. A zero coupon bond has a term to maturity of 25 years, a par value of $1,000. Yields or comparable market rates for this bond are 3.4%. Based on this information what is the value or price of the bond ? Show 2 decimals, for example: $999.99.

Correct Answer= 433.5

2. A bond has an annual coupon of 6.5%, a term to maturity of 14 years, a par value of $1,000. Yields or comparable market rates for this bond are 6.6%. Based on this information: What is the value or price of the bond? Show 2 decimals, for example: $999.99.

Correct Answer= 991.04

3. A bond pays interest semiannually. Its coupon rate is 6.5%, a term to maturity of 15 years, a par value of $1,000. Yields or comparable market rates for this bond are 8%. Based on this information what is the value or price of the bond? Show 2 decimals, for example: $999.99.

Correct Answer= 870.31

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