Not yet answered Points out of 1.00 Flag groeition 16. An Fl manager purchases a zero-coupon bond that has two years to maturity. The manager paid $826.45 per $1,000 for the bond. The current yield on a one-year bond of equal risk is 9 percent, and the one-year rate in one year is expected to be either 11.60 percent or 10.40 percent. Either rate is equally probable.Given the expected one-year rates in one year, what are the possible bond prices in one year? Select one: O a $896.06 and $905.80. b. $802.92 and $820.47 O c. $912.40 and $922.32 od $734.90 and $751.56 e. $857.27 and 5866.93. Question 17 Not yet answered Points out of 100 Remove flag 17. An Fl manager purchases a zero-coupon bond that has two years to maturity. The manager paid $826.45 per $1,000 for the bond. The current yield on a one-year bond of equal risk is 9 percent, and the one-year rate in one year is expected to be either 11.60 percent or 10.40 percent. Either rate is equally probable.If the manager buys a one-year option with an exercise price equal to the expected price of the bond in one year, what will be the exercise price of the option? Select one: a. $900.93 b. $862.10. c. $917.36 od $811.70. De $743.23 Not yet anawered Points out of 1.00 Flag question 18. An Fl manager purchases a zero-coupon bond that has two years to maturity. The manager paid $826.45 per $1,000 for the bond. The current yield on a one-year bond of equal risk is 9 percent, and the one-year rate in one year is expected to be either 11.60 percent or 10,40 percent. Either rate is equally probable. Given the exercise price of the option, what premium should be paid for this option? Select one a. 52.2752 per $1,000 of bond option purchased. b. 52.2156 per $1,000 of bond option purchased OC. $4.0275 per $1,000 of bond option purchased, d. 52.2339 per $1,000 of bond option purchased. e $3.8211 per $1,000 of bond option purchased