Question 5: Find the bond price from the following two cases: Case 1, Zero coupon...
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Question 5: Find the bond price from the following two cases: Case 1, Zero coupon bonds of $9,100 are redeemed at par in 5 years. Calculate the price of the bond if the rate of discount for an annual average period is 7%. Case 2, what will be the price if the rate is increased to 9%? Choose an answer A: Case 1 is $12,763.22 and Case 2 is $14,582.58. B: Case 1 is $6,488.17 and Case 2 is $5,914.38. C: Case 1 is $2,552.64 and Case 2 is $9,109.16. D: Case 1 is $9,100.71 and Case 2 is $9,099.35
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