An unexpected result is examined a lot more closely, since it must disagree with some currently accepted theory to be accepted as unexpected. If something is expected, we generally don't question it, although this is sometimes a tragic mistake and may cost a lot more for a person.
Answer:
Present value of zero coupon bond = $283
Explanation:
Provided that zero coupon bonds are to be issued.
In zero coupon bonds issue price is less than face value to meet the needs.
Interest rate = 13%
Duration = 10 years, Paid semiannually.
Thus periods = 20
Interest rate = 
Therefore, Present value factor @6.5% for 20 periods = 0.283
Therefore, Value of bond today = $1,000
0.283 = $283
Answer:
Project Y = -$1,825.80
Project Z = $4,148.00
Explanation:
Calculation are as attached in the file
Answer:
5.79%
Explanation:
For the computation of current yield first we need to find the annual coupon is shown below:-
Annual Coupon = Coupon payment × Semi annual
= $28.25 × 2
= $56.5
Current Yield = Annual Coupon ÷ Market Price
= $56.5 ÷ $975.11
= 0.0579
or
= 5.79%
Therefore for computing the current yield we simply applied the above formula so that the correct rate could come