For bonds A and B below find the values of X and Y assuming each is a zero coupon bond with a $1,000 face value (semiannual compounding). $$\begin{array} { c c c c }
\text { Bond } & \begin{array} { c }
\text { Maturity } \
\text { (Years) }
\end{array} & \begin{array} { c }
\text { Yield } \
\text { (Percent) }
\end{array} & \begin{array} { c }
\text { Price } \
( \$ \$ )
\end{array} \
\hline \text { A } & X & 10 & 458.10 \
\text { B } & 9 & Y & 212.00
\end{array}$$
A)8 years and 4 percent
B)10 years and 8 percent
C)12 years and 10 percent
D)14 years and 12 percent
E)8 years and 18 percent

Question

For bonds A and B below find the values of X and Y assuming each is a zero coupon bond with a $1,000 face value (semiannual compounding). $$\begin{array} { c c c c } 
\text { Bond } & \begin{array} { c } 
\text { Maturity } \
\text { (Years) }
\end{array} & \begin{array} { c } 
\text { Yield } \
\text { (Percent) }
\end{array} & \begin{array} { c } 
\text { Price } \
( \$ \$ )
\end{array} \
\hline \text { A } & X & 10 & 458.10 \
\text { B } & 9 & Y & 212.00
\end{array}$$
A)8 years and 4 percent
B)10 years and 8 percent
C)12 years and 10 percent
D)14 years and 12 percent
E)8 years and 18 percent

Quizplus · Accepted Answer

The Answer of For bonds A and B below find the values of X and Y assuming each is a zero coupon bond with a $1,000 face value (semiannual compounding). $$\begin{array} { c c c c } 
\text { Bond } & \begin{array} { c } 
\text { Maturity } \
\text { (Years) }
\end{array} & \begin{array} { c } 
\text { Yield } \
\text { (Percent) }
\end{array} & \begin{array} { c } 
\text { Price } \
( \$ \$ )
\end{array} \
\hline \text { A } & X & 10 & 458.10 \
\text { B } & 9 & Y & 212.00
\end{array}$$
A)8 years and 4 percent
B)10 years and 8 percent
C)12 years and 10 percent
D)14 years and 12 percent
E)8 years and 18 percent

For Bonds a and B Below Find the Values of X