What is the implicit interest in the first year of bond life

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1. Suppose you purchase a zero coupon bond with a face value of ?$1000 maturing in 21 years, for $213.50 Zero coupon bonds pay the investor the face value on the maturity date. What is the implicit interest in the first year of the? bond's life?

2. Jerry just purchased a bond paying semiannual interest for a price of $1,000. Yields on bonds of similar risk are 10.1%. The bond has a face value of $1,000. Based on this? information, the coupon rate of the bond? is:

3. What is the percentage change in price for a zero coupon bond if the yield changes from 6.5% to 5.5?%? The bond has a face value of ?$1 000and it matures in 10years. Use the price determined from the first? yield, 6.5?%, as the base in the percentage calculation. The percentage change in the bond price if the yield changes from 6.5% to 5.5% is

4. Cyberdyne Systems is issuing a series of zero coupon bonds to raise? $500M to fund research and development at its Skynet division. Each bond will have a face value of ?$1000and will mature in 15years. The yield on the bond is 5?%. What is the fair price for one of? Cyberdyne's zero coupon? bonds?

5. A zero coupon bond has a face value of $ 1000 and matures in 4 years. Investors require? a(n) 7.1 % annual return on these bonds. What should be the selling price of the? bond?

Reference no: EM131962632

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