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  3. 1. consider the following features of a zero-coupo

1. Consider the following features of a zero-coupon bond: Coupon rate is zero, number of...

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Accounting

1. Consider the following features of a zero-coupon bond: Coupon rate is zero, number of years to maturity is 7, the yield to maturity is 12%. Calculate the price of the bond.
a. $1,067
b. $568
c. $452
d. $854
2. Consider the following features of a straight bond: Annual interest rate is 7%, number of years to maturity is 7, the yield to maturity is 10%. What is the value of the bond?
a. $979
b. $850
c. $854
d. $452
3. Consider the following features of the following straight bond: Coupon rate is 6% (annual), number of years to maturity is 7, and the current price is $900. What is the yield to maturity of this bond?
a. 7.92%
b. 6.05%
c. 12.60%
d. 17.83%

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