
Question
Zero-Coupon Discount Rate
- What is the current value of a zero-coupon bond that pays a face value of $1,000 at maturity in 9 years if the appropriate discount rate is 7%.
Please round your answer to the nearest cent.
- What interest rate is implicit in a $1,000 par value zero-coupon bond that matures in 5 years if the current price is $430.
Please specify your answer in decimal terms and round your answer to the nearest thousandth (e.g., enter 12.3 percent as 0.123).
- What is the current value of a $1,000 bond with a 8% annual coupon rate (paid annually) that matures in 9 years if the appropriate discount rate is 5%.
Please round your answer to the nearest cent.
- What is the current value of a $1,000 bond with a 5% annual coupon rate (paid semi-annually) that matures in 6 years if the appropriate stated annual discount rate is 8%.
Please round your answer to the nearest cent.
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