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Six years ago XYZ International issued some 65-year zero-coupon bonds that were priced with a market's...

Six years ago XYZ International issued some 65-year zero-coupon bonds that were priced with a market's required yield to maturity of 11 percent and a par value of $1,000. What did these bonds sell for when they were issued? Now that 6 years have passed and the market's required yield to maturity on these bonds has climbed to 13 percent, what are they selling for? If the market's required yield to maturity had fallen to 9 percent, what would they have been selling for?
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Answer #1

Price at the time of issues is calculated as follows, FV is the par value or the maturity value, r is the required yield and n is the number of years:

Price after 6 years if the required yield is 13% is calculated below:

n is the time to maturity so after 6 years, the time to matuity is 65-6 = 59 years

Price after 6 years if the required yield is 9% is calculated below:

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