What is the interest rate on the payments

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1. There is a zero coupon bond that sells for $4,357.54 and has a par value of $10,000. If the bond has 17 years to maturity, what is the yield to maturity? Assume semiannual compounding.

4.78%

4.82%

5.01%

4.95%

4.75%

2. Roger has just lost a lawsuit and has agreed to make equal annual payments of $12,700 for the next 10 years with the first payment due today. The value of this liability today is $97,000. What is the interest rate on the payments?

5.77%

5.23%

6.16%

4.97%

6.56%

Reference no: EM131976723

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