What is the future value at maturity

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1. What is the future value at maturity in 8 years of a $1,000 zero coupon government bond that cost $635.25, if comparable yields today are 7%?

$582.01

$612.13

$724.33

$1,000.00

2. LMN Corporation is proposing to issue $10MM in 20 year bonds, 6.4%, with a conversion feature. The investment value of the convertible bond as debt takes into account:

I. The conversion value of the bond into common stock.

II. The current interest rate that is being paid on comparable, non-convertible, debt.

III. The requirement that principal be retired at maturity.

IV. The annual interest that is being paid by the bond.

I only

I and III

II, III & IV

I, III & IV

Reference no: EM131937970

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