Problem 1.
A) Calculate the price of a zero coupon bond that matures in 20 years if the market interest rate is 6.5 percent.
B) Assume semi-annual compounding.
Problem 2.
A) Compute the price of a 4.5 percent coupon bond with 15 years left to maturity and a market interest rate of 6.8 percent.
B) Assume interest payments are paid semi-annually, and solve using semi-annual compounding.
Problem 3.
A) A 6.85 percent coupon bond with 26 years left to maturity is offered for sale at $1,035.25. What yield to maturity [interest rate] is the bond offering?
B) Assume interest payments are paid semi-annually and solve using semi-annual compounding.