Question

# ​Zero-coupon bond. Wesley Company will issue a zero-coupon bond LOADING... this coming month. The projected bond...

​Zero-coupon bond. Wesley Company will issue a zero-coupon bond LOADING... this coming month. The projected bond yield LOADING... is 6%. If the par value LOADING... is ​\$5,000​, what is the​ bond's price using a semiannual convention if

b. the maturity is 40 ​years?

c. the maturity is 60 ​years?

d. the maturity is 100 ​years?

Part B

Callable bond. Corso Books has just sold a callable bond. It is a​ thirty-year monthly bond with an annual coupon rate of 9​% and ​\$1,000 par value. The​ issuer, however, can call the bond starting at the end of 6 years. If the yield to call on this bond is 10​% and the call requires Corso Books to pay one year of additional interest at the call (12 coupon​ payments), what is the bond price if priced with the assumption that the call will be on the first available call​ date?

What is the bond price if priced with the assumption that the call will be on the first available call​ date?

\$

​(Round to the nearest​ cent.)

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calc:

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