Question

a. Consider a​ zero-coupon bond with a $1,000 face value and 10 years left until maturity....

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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