A zero-coupon bond has a 1000 par value and has 10 years to


1. A 2-for-1 stock split is declared. In this case, which of the following statements is true?

The cash account declines.

The common stock account rises.

The retained earnings fall.

The par value of the common stock is reduced.

2. A zero-coupon bond has a $1000 par value, and has 10 years to maturity. The yield-to-maturity is 5%, and the bond's period is annual. What is the bond's price today?

A. $588.23

B. $613.91

C. $985.23

D. $1050.42

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Financial Management: A zero-coupon bond has a 1000 par value and has 10 years to
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