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Question 2 What is the price of a 10 year, $1,000 face value, zero coupon bond with a 10% YTM? Assume annual compounding. 344 386
Question 2
What is the price of a 10 year, $1,000 face value, zero coupon bond with a 10% YTM?
Assume annual compounding.
344 | ||
386 | ||
512 | ||
1000 |
A perpetuity of $50,000 per year beginning next year offers a 10% interest rate. What is its present value?
$5,000 | ||
$50,000 | ||
$500,000 | ||
$5,000,000 |
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