Complete the Table below for a 10-year zero coupon bond with a par value of for each of the following annual discount rate: 1%, 2%, 3%....13%,14%.

Annual Discount Rate - Semi-Annual Discount Rate - Bonds Value on Annual Coupon Basis - Bonds Value on semi annual Coupon Basis

Notice. In computing the value of a zero-coupon bond, the number of six months (i.e. number of years x 2) is used in the denominator of the formula. The rationale is that the 2 pricing of a zero-coupon bond should be consistent with the standard semi-annual coupon payment (US and Canada).