Question: Problem 12-01 What would be the initial offering price for the following bonds (assume $1,000 par value and semiannual compounding)? Do not round intermediate calculations.

Problem 12-01

What would be the initial offering price for the following bonds (assume $1,000 par value and semiannual compounding)? Do not round intermediate calculations. Round your answers to the nearest cent.

  1. A 13-year zero-coupon bond with a yield to maturity (YTM) of 12%.

    $

  2. A 20-year zero-coupon bond with a YTM of 8%.

    $

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