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The Shamrock Corporation has just issued a $1,000 par value zero-coupon bond with an 8 percent yield to maturity, due to mature 15 years from today (assume semiannual compounding).

a. What is the market price of the bond?

b. If interest rates remain constant, what will be the price of the bond in three years?

c. If interest rates rise to 10 percent, what will be the price of the bond in three years?

Please answer in Excel with proper labels for each part and their detailed formulas for a great rating. 

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92394166

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