Use the following information to answer the question(s) belo…

Use the following information to answer the question(s) below. Maturity (years) 1 2 3 4 5 Zero-Coupon YTM 3.00% 3.25% 3.50% 4.00% 4.25% The price today of a three-year default-free security with a face value of $1000 and an annual coupon rate of 6% is closest to:

The Alex Inc. has a bond outstanding with a face value of $1…

The Alex Inc. has a bond outstanding with a face value of $1000 that reaches maturity in 15 years.  The bond certificate indicates that the stated coupon rate for this bond is 2% and that the coupon payments are to be made semi-annually.  Assuming the appropriate YTM on the Alex bond is 8.0%, then the price that this bond trades for will be closest to: