1. What price would you pay today for a zero-coupon bond that matures in 30 years if your required rate of return is 9%? The face value of the bond is $1,000 (3 marks)
2. A Delta Incorporated bond has a coupon rate of 8.5%, matures in 12 years, and sells for $835.60 (assume coupons are paid on a semi-annual basis). What is the approximate yield-to-maturity on the bond? (3 marks)