Transcribed Image Text
On the next seven questions, express monetary answers to thenearest whole dollar and percentages to thenearest hundredth.15. The price of a zero-coupon bond with an eight year maturityis $3,852.75. The face value of the bond is$5,000. What is the yield on the bond? (Assume semi-annualcompounding) (Express the percentage to thenearest hundredth)16. Calculate the price of a 7.48% coupon bond with 12 years leftto maturity and a market interest rate of 8.74%.Assume interest rates are semiannual and par value is $1,000.(Express the monetary value to the nearestwhole dollar.)17. A 6.75 percent coupon bond with 12 years left to maturity canbe called in 4 years. The call premium is oneyear of coupon payments. It is offered for sale at $1,062.75.Assume that interest payments are paid semiannuallyand par value is $1,000. What is the yield to call of the bond?(Express the percentage to thenearest hundredth)