1 marco chip inc just issued zero-coupon bonds with a par, Ask an Expert

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1. Marco Chip, Inc. just issued zero-coupon bonds with a par value of $1,000. The bond has a maturity of 6 years and a yield to maturity of 6.00 percent, compounded semi-annually. What is the current price of the bond?

2. The equity REIT A currently (current time is end of 2005) trades at $120/share. In the past year, the realized rate of return on A has been 10%, and A’s cap rate at the beginning of year was 13%. REIT A distributed all of its NOI in the past year to its shareholders in the form of dividends. What was the trading price of A at the beginning of 2005?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92654860

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