What did these bonds sell for when they were? issued

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Reference no: EM131869715

Assume Annual, not Semi-annual

?(Bond valuation)

Seven years ago XYZ International issued some 32?-year ?zero-coupon bonds that were priced with a? market's required yield to maturity of 13 percent and a par value of $1,000.

a. What did these bonds sell for when they were? issued?

b. Now that 7 years have passed and the? market's required yield to maturity on these bonds has climbed to 15 ?percent, what are they selling? for?

c. If the? market's required yield to maturity had fallen to 11 ?percent, what would they have been selling? for?

Reference no: EM131869715

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