A zero-coupon bond matures in 10 years and will be worth $1000.00 to the holder.         If the bond  was purchased 10 years ago, and yielded a return of 5% per year, how much         did the holder pay for the bond? (Assume annual compounding, and answer to the         nearest cent-$0.01).

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A: par = $1000 coupon rate = 6% n= 10 year r=8%

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Q: what is the bond's yield to maturity?

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Q: suppose you bought a 5- year-zero coupon Treasury bond for $800 per $1000 face value. Assume the…

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