Respuesta :
Answer:
a) Zero coupon bond does not pay periodical interest and formula to compute the value of a zero-coupon bond:
Value = Face Value / (1 +Yield / 2) ** Years to Maturity * 2
b) Interest deduction
After 1 year bond value from the above equation is 437.08
437.08 - 411.99 = 25.09
In the 14th year bond value from the above equation is 942.60
1000 - 942.60 = 57.40
c) Straight Line Method
Total Interest Paid = 1000 - 411.99
= 588.01
For yearly calculation
588.01 / 15 = 39.21
Further computation is done in the image below.

Answer:
A) 365.28
B) first year:
25.37593
and during last year:
66.49
C) straight line will generate interest evenly throughout the life of the bond:
(1,000 - 365.28) / 15 = 42.32 interest expense per year
Explanation:
We solve for the present value of a lump sum as the zero-coupon is a bond with no interest payment only maturity.
Is important to notice the required return is compounding semiannually thus, there are two payment per year and the rate should be halved:
[tex]\frac{Maturity}{(1 + rate)^{time} } = PV[/tex]
Maturity $1,000.00
time 30.00 (15 years x 2 payment per year)
rate 0.03500 (7% annual compounding semiannually)
[tex]\frac{1000}{(1 + 0.035)^{30} } = PV[/tex]
PV 356.2784
Now, we calculate the interest expense for the year
356.2784 x (1.035 x 1.035 -1 ) = 25.37593
For the last year
[tex]\frac{Maturity}{(1 + rate)^{time} } = PV[/tex]
Maturity $1,000.00
time 2.00
rate 0.03500
[tex]\frac{1000}{(1 + 0.035)^{2} } = PV[/tex]
PV 933.5107
1000 maturity - 933.51 value one year before = 66.49