Wesley Company will issue a zero-coupon bond this coming month. The projected yield for the bond is

Question:

Wesley Company will issue a zero-coupon bond this coming month. The projected yield for the bond is 5%. If the of the bond is $1,000, what is the price of the bond using a semiannual convention if
a. The is 20 years?
b. The is 30 years?
c. The is 50 years?
d. The is 100 years?

Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...