1. How much would you pay for a zero coupon bond with a Face value of $1,000 that matures in 5 years? This bond has a coupon rate of 5%.

2.

1. PowerTech Company has issued bonds paying a 3% Coupon Rate. The current market price of the bonds are $984.25. What is the Current Yield of the bond?

   2.97%

   3%

   3.05%

   3.14%

   3.

   1. Voyager, Inc. has issued bonds paying a 4% Coupon Rate. The current market price of the bonds are $960. What is the Current Yield of the bond?

      		4.17%
      		4%
      		4.21%
      		3.79%