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Facebook Inc. just issued a bond with a face value of $2,500. The bond does not pay any coupon interests (i.e., its a zero-coupon bond,
Facebook Inc. just issued a bond with a face value of $2,500. The bond does not pay any coupon interests (i.e., its a zero-coupon bond, with C =0) and has an yield to maturity of 10%. If this bond currently trades in financial markets for a price of $494.6120, then the bond is expected to mature in: O Cannot be determined 16 years 15 years 17 years Google Inc. offers a 7% coupon bond with monthly payments. The yield to maturity is 5.85% and the maturity date is 9 years from now. The market price of the bond which has a face value of $10,000 is: $9,250.7483 0 $9,233.7181 $10,787.3265 $10,803.1821 You open today's WSJ and notice that the yield to maturity for the U.S. Federal Govt. to borrow for 5 years is 3.07%. Given this information, the price of a bond issued by the U.S. Federal Govt with a face value of $1,000, an annual coupon of 10%, maturing in 10 years is: $1,000.0000 $1,589.0369 $574.1815 Cannot be determined
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