Questions : 3 Current Yield An 8%, semi-annual coupon bond has a $1,000 face value and matures in 8 years. What is the current yield on this bond if the yield to maturity is 7.8%? Answer Questions : 4 Zero Coupon Bond Zack is considering purchasing a 10-year, zero coupon bond with a face value of $1,000. How much should he be willing to pay for this bond if he wants to earn a 12% rate of return? Assume annual compounding