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Beckys Fashions has issued a 10-year, $1000 zero coupon bond to yield 8 percent. a) what is the initial price of the bond? b) if

Beckys Fashions has issued a 10-year, $1000 zero coupon bond to yield 8 percent.

a) what is the initial price of the bond?

b) if interest rates dropped to 6% immediately upon issue, what would be the price of the zero coupon bond?

c) if interest rates rose to 9% immediately upon issue, what would be the price of the bond?

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