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at 15 year, $1000 par value zero coupon bond is to be issued to yield 9%. a) what should be the initial price of the

at 15 year, $1000 par value zero coupon bond is to be issued to yield 9%.

a) what should be the initial price of the bond? (round to two decimals)

b) If immediately upon issue, interest rates drop to 7% what would be the value of the zero-coupon rate bond? (Round to two decimals)

c) If immediately upon issue, interest rates increase to 11% what would be the value of the zero-coupon rate bond? (Round to two decimals)

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