Q1) A Zero-Coupon Bond with maturity in 15 years produces a gross yield of 2.5% p.a. effective and has redemption value of £100. Compute the Zero-Coupon Bond's price £ Enter a value correct to 2 decimal places Q2) A Zero-Coupon Bond with face value £100 has 4 years until maturity. The bond is priced at £87. Calculate the yield to maturity % Enter a percentage correct to 2 decimal places.
Q1) A Zero-Coupon Bond with maturity in 15 years produces a gross yield of 2.5% p.a. effective and has redemption value of £100. Compute the Zero-Coupon Bond's price £ Enter a value correct to 2 decimal places Q2) A Zero-Coupon Bond with face value £100 has 4 years until maturity. The bond is priced at £87. Calculate the yield to maturity % Enter a percentage correct to 2 decimal places.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Q1) A Zero-Coupon Bond with maturity in 15 years produces a gross yield of 2.5% p.a. effective and
has redemption value of £100.
Compute the Zero-Coupon Bond's price
£
Enter a value correct to 2 decimal places
Q2) A Zero-Coupon Bond with face value £100 has 4 years until maturity. The bond is priced at £87.
Calculate the yield to maturity
%
Enter a percentage correct to 2 decimal places.
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