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Please provide the answer along with the calculation. Question 3. 3. (TCO C) A zero-coupon bond has a yield to maturity of 5% and a
Please provide the answer along with the calculation.
Question 3. 3. (TCO C) A zero-coupon bond has a yield to maturity of 5% and a par value of $1,000. If the bond matures in 16 years, it should sell for a price of _____ today. (Points : 5)
1.$458.00
2. $641.00
3. $789.00
4. $1,100.00
Question 5. 5. (TCO C)A perpetuity pays $100 each and every year forever. The duration of this perpetuity will be _____ if its yield is 9%. (Points : 5)
1. 7
2. 9
3. 9.39
4. 12.11
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