Question: Question 7 ( 8 Marks) a. What is Zero Coupon Bonds? How you can calculate the value of Zero coupon bonds? [2M) b. You have

Question 7 ( 8 Marks) a. What is Zero Coupon Bonds? How you can calculate the value of Zero coupon bonds? [2M) b. You have bought a zero-coupon bond for $300. It will mature in 6 years and pay the face value of $1,000 Assuming annual compounding, what is the implied rate of return for the bond? (2M) c. Albert Company bonds, with current yield 12%, will mature after 10 years. The coupon rate of these bonds is 10%. Calculate their market price and the yield to maturity (AM)

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