a. Consider a zero-coupon bond with a $1,000 face value and 10 years left until maturity. If the YTM of this bond is 7%, then the price of this bond is closest to:
A. $508.00
B. $711.69
C. $1,000.00
D. $610.02
B. Since your first birthday, your grandparents have been depositing $110 into a savings account every month. The account pays 6% interest annually. Immediately after your grandparents make the deposit on your 18th birthday, the amount of money in your savings account will be closest to:
A.$25,565
B.$59,653
C.$51,131
D.$42,609
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