1-Concordant Inc. wants to raise $50 million by issuing 10-year zero-coupon bonds with a yield to...

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1-Concordant Inc. wants to raise $50 million by issuing 10-year zero-coupon bonds with a yield to...

1-Concordant Inc. wants to raise $50 million by issuing 10-year zero-coupon bonds with a yield to maturity (EAR) of 7.6%.

What should be the total face value of the bonds (in $ million)?

2-

Treasury spot interest rates are as follows:

Maturity (years)	1	2	3	4
Spot rate (EAR)	2.1%	2.8%	3%	4.5%

What is the price of a risk-free zero-coupon bond with 3 years to maturity and a face value of $1,000 (in $)?

business finance

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Answer 1

Answer #1

1) Face value of bond:-

=PV(rate,nper,pmt,fv)

=PV(7.6%,10,0,50000000)

=24035175.17 or 24.04 million

2) Price of bond:-

=PV(3%,3,0,1000)

=915.14

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Answer 2

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Homework Answers

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