Zero Coupon Bond

A zero coupon bond is a bond that is sold now at a discount and will pay its face value when it

matures. No interest payments are made.

Use this information to answer questions $10-11$ below.

Question $10$

Use the Zero Coupon Bond information above to answer this question.

A zero coupon bond with a face value of $$19,000$ matures in $11$ years. What should the bond

be sold for now if its rate of return is to be $4\mathrm{.}68\%$ compounded annually?

$

Round to the nearest dollar.

Question $11$

Use the Zero Coupon Bond information above to answer this question.

You buy a zero coupon bond with a face value of $$19,000$ that matures in $29$ years for

$$9,000.$ What is your annual compound rate of return?

$\%.$ Round to the nearest thousandths of a percent $(3$ decimal places$).$