Please show work - thank you

What is the value of a 18 year bond that makes no coupon payments (0-coupon) with a yield to maturity (quoted rate) of 12.2 % and a maturity value of $1000? Note, I know the question says bond, but it actually is a simple present-value problem. Calculate your answer to the nearest $.01. Enter your answer as a postive number.

Question 11

Assume that you wish to purchase an 8% 20-year bond that has semiannual interest payments. If you require a 10 percent nominal yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond?

Question 11 options:

	$619
	$674
	$761
	$828
	$902