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A 10-year, $1,000 par value zero-coupon rate bond is to be issued to yleld 9 percent. Use Agpendix B for an approximate answer but calculate

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A 10-year, $1,000 par value zero-coupon rate bond is to be issued to yleld 9 percent. Use Agpendix B for an approximate answer but calculate your final answer using the formula and financlal calculator methods. 0. What should be the initial price of the bond? (Assume annual compounding. Do not round Intermedlate calculations and round your answer to 2 decimal places.) b. If Immediately upon Issue, Interest rates dropped to 8 percent, what would be the value of the zero-coupon rate bond? (Assume annual compounding. Do not round intermedlate calculations and round your answer to 2 decimal places.) c. If immediately upon issue, interest rates increased to 10 percent, what would be the value of the zero-coupon rate bond? (Assume annual compounding. Do not round Intermedlate calculations and round your answer to 2 decimal places.)

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