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QUESTION 1 You are offered a 9-year zero-coupon bond (a bond having just a single principal payment) by three different brokers. The bond pays $1,000
QUESTION 1 You are offered a 9-year zero-coupon bond (a bond having just a single principal payment) by three different brokers. The bond pays $1,000 in 9 years. Broker A will sell you the bond at an annually compounded yield of 5.5%. What is the price (in standard form as a percentage of par to 3 decimal places) Broker A wants to charge? O 100.000 60.989 61.763 O 65.552 None of the above. QUESTION 2 Broker B wants to offer you the same zero-coupon 9-year bond at a semi-annually compounded yield of 5.496. What is the price Broker spots)? [Do not add the % symbol] wants to charge (as a percentage of par to 3 decimal QUESTION 3 Broker C wants to sell you the same zero coupon 9-year bond at a continuously compounded rate of 5.396. What is the price broker wants to charge (as a percentage of par to 3 decimal places leaving out the % symbol)
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