A 16-year, $1,000 par value zero-coupon rate bond is to be issued to yield 6 percent....

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A 16-year, $1,000 par value zero-coupon rate bond is to be issued to yield 6 percent. Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods. a. What should be the initial price of the bond? (Assume annual compounding. Do not round intermediate calculations and round your answer to 2 decimal places.) Bond price Answer is complete and correct. 393.65 b. If immediately upon issue, interest rates dropped to 5 percent, what would be the value of the zero-coupon rate bond? (Assume annual compounding. Do not round intermediate calculations and round your answer to 2 decimal places.) Answer is complete but not entirely correct. Bond price 458.11. 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 intermediate calculations and round your answer to 2 decimal places.) Answer is complete but not entirely correct. Bond price 925.93 6 A 16-year, $1,000 par value zero-coupon rate bond is to be issued to yield 6 percent. Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods. a. What should be the initial price of the bond? (Assume annual compounding. Do not round intermediate calculations and round your answer to 2 decimal places.) Bond price Answer is complete and correct. 393.65 b. If immediately upon issue, interest rates dropped to 5 percent, what would be the value of the zero-coupon rate bond? (Assume annual compounding. Do not round intermediate calculations and round your answer to 2 decimal places.) Answer is complete but not entirely correct. Bond price 458.11. 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 intermediate calculations and round your answer to 2 decimal places.) Answer is complete but not entirely correct. Bond price 925.93 6