consolidated company needs to raise capital. its investment banker suggest that 20-year zero coupon bonds could be sold at a yield to maturity of 8%. what is the market value of each zero coupon bond using the semi-annual formula?

a. $208.29

b. $224.54

c. $204.69

d. $218.52

jon has just issued a 20 year, 10% coupon rate, $1,000 par bond that pays interest semi-annually. the required return is currently 8 percent and the company is certain that it will remain at 8 percent until the bond matures in 20 years.

5 years later, what is the value of the bond with 15 years to maturity?

a. $1,125.84

b. $1,172.92

c. $1,261.68

d. $1,238.35