Question: Problem #1 You are purchasing a 20-year, zero coupon bond with a face value of $1,000. The yield to maturity is 5.4% with semi-annual compounding.

Problem #1 You are purchasing a 20-year, zero coupon bond with

Problem #1 You are purchasing a 20-year, zero coupon bond with a face value of $1,000. The yield to maturity is 5.4% with semi-annual compounding. What is the current market price? Problem #2 Magnificent Bowl Company offers a 6.0% coupon bond with annual payments and a yield to maturity of 4.75%. The bond matures in 15 years. What is the market price of the bond if the face value is $1,000

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