Q.20 Johannesburg Corporation issued zero-coupon bonds in 1976, which will mature in 2006. The initial price of the bonds gave 9.5% return to the investors. Find the issue price of these bonds.

Q.21 Edwards Corp 9s2018 bonds pay interest semiannually. If your required rate of return for such a bond is 11% annually, how much should you pay for a $1,000 bond in 2001?