Question: John needs $1,000,000 to retire in five years. There is an annualzero-coupon bond with a par-value $1,000 that matures in 8 years. and has a

 John needs $1,000,000 to retire in five years. There is an
annualzero-coupon bond with a par-value $1,000 that matures in 8 years. and

John needs $1,000,000 to retire in five years. There is an annualzero-coupon bond with a par-value $1,000 that matures in 8 years. and has a YTM of 7.5% If John buys the bond and the YTM moves to 5.5% when he sells the bond in 5 years, how much money will John have for retiremei If John buys the bond and the YTM moves to 9.5% at what price will he sell the bond for in 5 years? If John buys the bond and the YTM moves to 9.5% when he sells the bond in 5 years, how much money will John have for retirement What is the current price of the 8 year zero-coupon bonds if the 7.5% ? How much does John need to invest today if the bonds YTM is 7.5% and he wants to reach his five year goal of $1,000,000

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