1. 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.
2. You buy a ten-year coupon 3% coupon bond for a price of 95 and sell it three yrs later for a price of 107. the interest is paid semi-annually. what is the annual return on your bond, quoted on a semi0annual basis.
3. Sondra Davis borrows $6,000 on a 10%, 120-day note. On the 60th day, Sondra pays $2,000 on the note. If ordinary interest is applied, what is Sondra's adjusted principal after the partial payment? What is the adjusted balance due at maturity? What is the amount of interest saved by making the partial payment?