You have just purchased a zero-coupon bond with a face value of $15,000 and 18 years until maturity. The purchase price for the bond was $4,437.96. How much interest revenue for the bond will be reported for the first year?

Select one:

a. $282.72

b. $332.40

c. $310.66

d. $314.71

e. $263.33

A business purchases a bond investment on its payment date. The investment is a 18-year, 5.4 percent semi-annual coupon bond with a $35,000 face value. How much did the business pay for the bond if its yield-to-maturity is 7.6%?

Select one:

a. $27,514.31

b. $27,697.12

c. $28,218.94

d. $27,578.96

e. $28,257.18

A Government of Canada 1-year bond has a yield to maturity of 4.76%. According to the consensus economic forecast, the expected inflation rate for the upcoming year is 2.2%. Using the exact Fisher Effect equation, calculate the real interest rate for the bond (nearest 1/10 of one percent without % symbol, e.g. 9.5).