(Answered) A 10-year bond with par value equals 1000 pays 10 percent

Finance

A ten-year bond, with par value equals $1000, pays 10% annually. If similar bonds are currently yielding 6% annually, what is the market value of the bond? Use semi-annual analysis.

a) $1,000.00

b) $1127.50

c) $1297.85

d) $2549.85

A 30-year zero-coupon bond that yields 12% percent is issued with a $1000 par value. What is the issuance price of the bond (round to the nearest dollar)?

a) $33

b) $83

c) $8333

d) $none of the above

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