Why is the feature concern-what does mean for investors

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1. Your company wants to raise ?$7.5 million by issuing 10?-year ?zero-coupon bonds. If the yield to maturity on the bonds will be 8 % ?(annual compounded APR?), what total face value amount of bonds must you? issue?

2. Why occurrence change in bond price as a function of change in yield to maturity and discuss how duration impacts the sensitivity of a bond. why is the feature a concern? what does this mean for investors? can investors avoid this feature, why or why not?

Reference no: EM132005867

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