Fill in the table below for the following zero-coupon bonds, all of which have par values...

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Question

Fill in the table below for the following zero-coupon bonds, all of which have par values of $1,000. Use semi- annual periods

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Answer 1

Answer #1

price of coupon = par value/(1+i)^n

i = interest rate per period

n = number of periods

=>

400 = 1000/(1+0.08/2)^n

=>

number of periods = 23.36

=>

number of years = 23.36/2 = 11.68 years

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Answer 2

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