1) What is the price of a 10 year, $1000 face value, zero coupon bond with a 10% YTM?

a) 344

b) 386

c)512

d)1000

2) What is a present value of the following payment stream, discounted at 18% annually, $10,000 at the end of year 1 (end of first year which is time 1) $20,000 at the end of year 2, and $30,000 at the end of year 3?

1. 38,402
2. 39,120
3. 40,564
4. 41,097