9. Consider a 4-year zero-coupon bond with a par value of $1,000 selling for $871.442.What is the yield to maturity (YTM) of this bond?10. Consider the same bond in the last question. What would the price of this bond ayear later if interest rate at that time is 3.75%? 3.Consider a play-off tournament with 3n players. In the first round ofthis tournament three players are paired-up and they play a unique game. Let a bethe number of possible pairings for this first round. Describe the first 5 terms of thesequence (an), n € N, and find the recursion that an satisfies.

Note: Question 3 posted does not relate to Finance subject. Hence, question 9 and 10 is answered.…

9. Consider a 4-year zero-coupon bond with a par value of $1,000 selling for $871.442. What is the yield to maturity (YTM) of this bond? 10. Consider the same bond in the last question. What would the price of this bond a year later if interest rate at that time is 3.75%?

9. Consider a 4-year zero-coupon bond with a par value of $1,000 selling for $871.442. What is the yield to maturity (YTM) of this bond? 10. Consider the same bond in the last question. What would the price of this bond a year later if interest rate at that time is 3.75%?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter4: Bond Valuation

Section: Chapter Questions

Problem 8MC: Suppose a 10-year, 10% semiannual coupon bond with a par value of 1,000 is currently selling for...

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Question

9. Consider a 4-year zero-coupon bond with a par value of $1,000 selling for $871.442.
What is the yield to maturity (YTM) of this bond?
10. Consider the same bond in the last question. What would the price of this bond a
year later if interest rate at that time is 3.75%?

3.
Consider a play-off tournament with 3n players. In the first round of
this tournament three players are paired-up and they play a unique game. Let a be
the number of possible pairings for this first round. Describe the first 5 terms of the
sequence (an), n € N, and find the recursion that an satisfies.

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