A 10-year bond pays annual interest of 8 on a face value of


1. A 30-year zero-coupon bond that yields 12% percent is issued with a $1000 par value. What is the issuance price of the bond?

A. $33.38

B. $83.52

C. $98.43

D. $154.89

2. A 10-year bond pays annual interest of 8% on a face value of $1,000. If similar bonds are currently yielding 10%, what is the market value of the bond?

A. $877.11

B. $910.93

C. $1,100.78

D. None of the above

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Financial Management: A 10-year bond pays annual interest of 8 on a face value of
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