P10.7 Rhett purchased a 13% zero-coupon bond with a 15-year maturity and a $20 000 par value 15 years ago. The bond matures tomorrow. How much will Rhett receive in total from this investment, assuming all payments are made on these bonds as expected?

P10.8 Nate purchased an interest-bearing security last year, planning to hold it until maturity.

He received interest payments, and, to his surprise, a sizeable amount of the principal was paid back in the first year. This happened again in year 2. What type of security did Nate purchase?