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i need help solving #7 and #8 7) a) If the market...

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Finance

i need help solving #7 and #8 image
7) a) If the market rate of interest is 6%, what is the price of a 1-year, zero-coupon bond with a $1000 par value? PV = RATE= NPER = PMT = FV = b) This is bond is selling at: PAR / PREMIUM / DISCOUNT (highlight best answer) 8) The Garcia Company's bonds have a face value of $1,000, will mature in 10 years, and carry a coupon rate of 9 percent. Assume interest payments are made semiannually. a) Determine the price (PV)present value of the bond's cash flows if the required rate of return is 16 percent. PV = RATE= NPER = PMT= FV = b) How would your answer change if the required rate of return is 12 percent? (required rate of return = what investor must earn) PV = RATE = NPER PMT = 144

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