Please Provide Answer with correct option Calculate the price of a zero coupon bond that matures in 10 yearsif the market interest rate is 6 percent. Assume semi-annual interestpayments and $1,000 par value. (Round the answer to 2 decimalplaces.)a. $1,000.00b. $553.68c. $558.39d. $940.00

Step 1: Definition of Zero-Coupon Bonds:A zero-coupon bond makes only one payment to the…

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EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 9P

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Calculate the price of a zero-coupon bond that matures in 10 years if the market interest rate is 6 percent. (Assume semiannual compounding and $1,000 par value.) A.) $553.68 B.) $558.66 C.) $940.00 D.) $1,000.00
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Consider a bond with a current value of $928.01. It is a 10-year, $1,000 bond, coupons paid semi-annually, and has a 7% coupon rate. a. The bond's yield to maturity (YTM) is: b. What will be its value (per $1,000 of face) if its YTM changes to 10%? Question content area bottom Part 1 a. The YTM is enter your response here%. (Round to two decimal places.) b. Value (per $1,000 of face): $enter your response here. (Round to the nearest cent.)

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Calculate the price of a zero coupon bond that matures in 10 years if the market interest rate is 6 percent. Assume semi-annual interest payments and $1,000 par value. (Round the answer to 2 decimal places.) a. $1,000.00 b. $553.68 c. $558.39 d. $940.00