QUESTION 7-12 ONLY

7-12. (Bond valuation-zero coupon) The Latham Corporation is planning on issuing bonds that pay no interest but can be converted into $1,000 at maturity, 7 years from their purchase. To price these bonds competitively with other bonds of equal risk, it is determined that they should yield 6 percent, compounded annually. At what price should the Latham Corporation sell these bonds? 7-13. (Bond valuation) You are examining three bonds with a par value of $1,000 r- nd ra concerned with what would happen to