What is the value today of a zero-coupon bond, Financial Accounting

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What is the value today of a zero-coupon bond

Response to the following questions:

1. What is the value today of a zero-coupon bond with a maturity value of $1,000 and five years remaining to maturity if it is priced to yield:

a. 5%?

b. 8%?

c. 10%?

d. 12%?

e. 14%?

2. The R. T. Ely Corporation issued bonds at par on January 1, 1995, with a face value of $1,000, an original maturity of five years and a coupon rate of 5% (paid annually). What is the price of one Ely bond on January 1, 1998 if Ely bonds are priced to yield 6%?

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Financial Accounting: What is the value today of a zero-coupon bond

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