Question

A risk-free, zero-coupon bond with a face value of $10,000 has 15 years to maturity. If...

A risk-free, zero-coupon bond with a face value of $10,000 has 15 years to maturity. If the YTM is 6.1%, which of the following would be closest to the price this bond will trade at?
A) $4937
B) $5760
C) $6582
D) $4114

A risk-free, zero-coupon bond has 15 years to maturity. Which of the following is closest to the price per $1000 of face value that the bond will trade at if the YTM is 6.1%?
A) $663.78
B) $774.42
C) $553.15
D) $885.05

What is the difference between these two questions? Please help explain.

Homework Answers

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