Question: QUESTION 1 A 10 year, $1,000,000 zero coupon bond is priced to yield 10%. The amount the issuing company will receive when it is issued
QUESTION 1 A 10 year, $1,000,000 zero coupon bond is priced to yield 10%. The amount the issuing company will receive when it is issued is $ 620,921 $1,000,000 $ 998,980 $783,500 $385,543 QUESTION 2 Use the following information to answer the next 4 questions: You want to buy an Adele Company 8%, $100,000 bond. The bond pays Interest annually. The bond currently has exactly four years to maturity. Figure out the value of the bond under each of the following scenarios: Current interest rates are 6% $ 108,424.73 $ 100,000.00 $ 74,725.82 $ 111,164.76 $106.930.21 QUESTION 3 The bonds from question 2 will be said to be sold at a discount a premium at par the coupon rate none of the above
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