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Question :
71.Zero coupon bonds: The U.S. Treasury has issued 10-year zero : 1400446

71.**Zero coupon bonds: **The U.S. Treasury has issued 10-year zero coupon bonds with a face value of $1,000. Assume that coupon payments are normally semiannual. What will be the current market price of these bonds if the opportunity cost for similar investments in the market is 6.75 percent? (Round to the nearest dollar.)

a.$684

b.$860

c.$515

d.$604

72.**Zero coupon bonds:** Robertsons, Inc., is planning to expand ita specialty stores into five other states and finance the expansion by issuing 15-year zero coupon bonds with a face value of $1,000. If your opportunity cost is 8 percent and similar coupon-bearing bonds will pay semiannually, what will be the price at which you will be willing to purchase these bonds? (Round to the nearest dollar.)

a.$308

b.$383

c.$803

d.$866

73.**Zero coupon bonds:** Jarmine Corp. is planning to fund a project by issuing 10-year zero coupon bonds with a face value of $1,000. Assuming semiannual coupons to be the norm, what will be the price of these bonds if the appropriate discount rate is 14 percent? (Round to the closest answer.)

a.$852

b.$258

c.$419

d.$841

74.**Yield to maturity: **Jenny LePlaz is looking to invest in some five-year bonds that pay annual coupons of 6.25 percent and are currently selling at $912.34. What is the current market yield on such bonds? (Round to the closest answer.)

a.9.5%

b.8.5%

c.6.5%

d.7.5%

75.**Yield to maturity:** Nathan Akpan is planning to invest in a seven-year bond that pays annual coupons at a rate of 7 percent. It is currently selling at $927.23. What is the current market yield on such bonds? (Round to the closest answer.)

a.10.4%

b.9.5%

c.8.4%

d.7.5%

76.**Yield to maturity:** Jane Almeda is interested in a 10-year bond issued by Roberts Corp. that pays a coupon of 10 percent annually. The current price of this bond is $1,174.45. What is the yield that Jane would earn by buying it at this price and holding it to maturity? (Round to the closest answer.)

a.7%

b.7.5%

c.8%

d.8.5%

77.**Yield to maturity:** Shawna Carter wants to invest her recent bonus in a four-year bond that pays a coupon of 11 percent semiannually. The bonds are selling at $962.13 today. If she buys this bond and holds it to maturity, what would be her yield? (Round to the closest answer.)

a.11.5%

b.11.8%

c.12.5%

d.12.2%