Answer:
Buster Norton and the Bonds of San Francisco Opera Company
If Mr. Norton purchases three of these bonds today, in 10 years from today at maturity, he will receive:
= $6,000.
Explanation:
a) Data and Calculations:
Face value of each zero coupon bond purchased = $2,000
Number of bonds purchased by Norton = 3
Value of bond investments at maturity = $6,000 ($2,000 * 3)
Maturity period of the San Francisco Opera Company bonds = 10 years
Annual Yield to Maturity of similar bonds in the market = 12%
From an online financial calculator:
Present value of bonds = $1,932 (with each as $644 ($1,932/3))
N (# of periods)  10
I/Y (Interest per year)  12
PMT (Periodic Payment)  0
FV (Future Value)  -6000
  
Results
PV = $1,931.84
Total Interest	$4,068.16