A 1000 par value zero-coupon bond with 5 years to maturity, Financial Management

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A 1000 par value zero-coupon bond with 5 years to maturity

A. A $1,000 par value zero-coupon bond with 5 years to maturity has a yield to maturity of 9.6. What is the bond's current price? (Show your answer to two decimals, e.g., 912.34)

B. What is the CAPITAL GAINS YIELD of a $1,000 par value bond that matures in 5 years and pays interest of $37 every six months if the yield to maturity is 4 percent. (Show your answer as a decimal to four places)

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Financial Management: A 1000 par value zero-coupon bond with 5 years to maturity

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Financial Management: A 1000 par value zero-coupon bond with 5 years to maturity

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