Zero-coupon bond Wesley Company will issue a zero-coupon bond this coming month. The projected bond yield is 3% Ift the price using a semiarnual convention if is $1,000, what is the bonds a the maturity is 10 years? b. the maturity is 30 years? c. the maturity is 50 years? d. the maturity is 80 years? a What is the price of the bond using a semiannual convention if the maturity is 10 years? (Round to the nearest cent.)
Zero-coupon bond Wesley Company will issue a zero-coupon bond this coming month. The projected bond yield is 3% Ift the price using a semiarnual convention if is $1,000, what is the bonds a the maturity is 10 years? b. the maturity is 30 years? c. the maturity is 50 years? d. the maturity is 80 years? a What is the price of the bond using a semiannual convention if the maturity is 10 years? (Round to the nearest cent.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Please answer all questions what is the price of the bond using a semiannual convention if the maturity is 10 years, 30 years, 50 years and 80 years with explanations Thx .
Transcribed Image Text:**Zero-Coupon Bond Problem**
Wesley Company will issue a zero-coupon bond this coming month. The projected bond yield is 3%. If the par value is $1,000, what is the bond's price using a semiannual convention if:
a. The maturity is 10 years?
b. The maturity is 30 years?
c. The maturity is 50 years?
d. The maturity is 80 years?
a. **What is the price of the bond using a semiannual convention if the maturity is 10 years?**
*(Round to the nearest cent.)*
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