For bonds, assume coupons paid semi-annually, coupon rates and yields quoted with semi-annual compounding, and redeemable at par unless otherwise noted (Ignore it if it's not relevant to the question).

A loan with level annual payments has an effective annual interest rate of 4%. If the amount of principal in the third payment is $500, what is the amount of principal in the 7th payment? 13. Which 8-year, $100 par value bond earns a higher yield, a zero coupon priced at $75 or a 5% coupon bond priced at $115?