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all five questions relate back to first question QUESTION 1 A5 year, 51,000,000 zero coupon bond is priced to yield 10%. The amount the issuing

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QUESTION 1 A5 year, 51,000,000 zero coupon bond is priced to yield 10%. The amount the issuing company will receive when it is issued is 5620,921 $1,000,000 $ 998.980 $783,500 $385,543 QUESTION 2 Use the following information to answer the next 4 questions: You want to buy an Adele Company 10%, $100,000 bond. The bond pays Interest annually. The bond currently has exactly four years to maturity. Figure out the value of the bond under each of the following scenarios Current interest rates are 6% 5 108.424.73 5 100,000.00 $74.725.82 $ 113,860.42 $ 106,930 21 QUESTION 3 Current Interest rates are 10% $ 108,424.73 $ 100,000.00 $ 93,660.27 $ 62,092.13 $ 92,418.43 QUESTION 4 The bonds from question 3 will be said to be sold at a discount a premium at par the coupon rate none of the above QUESTION 5 Current interest rates are 12% $ 108,424.73 $ 93,925.30 $ 74,725.82 $ 68,058.32 $ 100,000.00

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