What will be the price of these bonds

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Question 1 - Ten-year zero coupon bonds issued by the U.S. Treasury have a face value of $1,000 and interest is compounded semiannually. If similar bonds in the market yield 7.2 percent, what is the value of these bonds?

Question 2 - Crane Real Estate Company management is planning to fund a development project by issuing 10-year zero coupon bonds with a face value of $1,000. Assuming semiannual compounding, what will be the price of these bonds if the appropriate discount rate is 13.4 percent?

Reference no: EM132991147

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