1. You are considering buying 24 zero coupon bonds with a par value of $1000, with 12 years to maturity and a quoted rate of 7% compounded monthly, Assuming no transactions cost, what will your total cost to buy the bonds?
2. You're considering a $1000 face value bond with 11 years time to maturity. The bond has a coupon of 4.9% paid semiannually. If the current market rate is 3.1%, what should the current price be?
3. You recently won $16,606. You plan to invest this into an account with a 10.4% rate of return. If the account compounds daily how much will you have after 22 years?