Calculate price of zero coupon bond

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Reference no: EM131993233

1. The difference in the present value of bond A and bond B is $178.3265. Bond A has a face value of $ 1,000, a coupon rate of 10% and maturity of 3 years and Bond B is a zero coupon bond with a face value of $1,100 and duration of 3 years. If both bonds are priced using the same yield r. Calculate r

2. Calculate the price of a zero coupon bond that matures in 24 years if the market interest rate is 4.9 percent. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Zero coupon bond price $

3. A simple random sample is defined by:

A) The method of selection.

B) Examination of the outcome.

C) Both of the above.

D) How representative the sample is of the population.

E) The size of the sample versus the size of the population.

Reference no: EM131993233

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