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Seven years ago XYZ International issued some 32-year zero-coupon bonds that were priced with a market's required yield to maturity of 6 percent and a
Seven years ago XYZ International issued some 32-year zero-coupon bonds that were priced with a market's required yield to maturity of 6 percent and a par value of $1,000. What did these bonds sell for when they were issued? Now that 7 years have passed and the market's required yield to maturity on these bonds has climbed to 8 percent, what are they selling for? If the market's required yield to maturity had fallen to 4 percent, what would they have been selling for?
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