Question: Using annual compounding, what price would you predict for a 20-year, 7% bond priced to yield 5%? Using annual compounding, what price would you predict

  1. Using annual compounding, what price would you predict for a 20-year, 7% bond priced to yield 5%?
  2. Using annual compounding, what price would you predict for a 10-year, 6% bond priced to yield 9%?
  3. A 10-year zero coupon bond is yielding 5%. Using annual compounding, what would you predict the price would be for the bond?

  4. A 20-year zero coupon bond is currently priced at $215. What is the bonds annualized yield?

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