How much should be willing to pay for bond today

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Question 1: Assume that you are going to invest in a zero coupon bond. It has a 28 year life; 10.5% required return. The face value of the bond is $10,000. How much should you be willing to pay for this bond today?

Question 2: Find the yield to call for the following bond. It has 30 years to maturity. It can be called in 6 years at a call price of 1080. The coupon rate is 9%. It is priced at $950.

Reference no: EM132869520

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