Hilo Inc. of Chandler, Arizona has floated some zero coupon bonds to finance its capital expenditures. The Par Value of each bond is $1000.
A) Assuming a market price of $300 with a maturity of 30 years, determine and discuss the bond s yield to maturity.
B) Assuming a market price of $300 and yield to maturity of 8%, determine and discuss the holding period.
C) Assuming a holding period of 10 years and a yield to maturity of 10%, determine and discuss the bond s current market price.