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NEW QUESTION: 1
A 12-year, $1,000 face value zero-coupon bond is priced to yield a return of 7.00 percent on a semi-annual basis. What is the price of the bond, and how much interest will the bond pay over its life, respectively?
(Select the choice that is closest to the correct answer.)
A. $438, $562.
B. $444, $556.
C. $840, $160.
D. $562, $438.
Using the equation:Pricezerocoupon= Face Value * [ 1 / ( 1 + i/n)n*2]
Here,Pricezerocoupon= 1000 * [ 1 / (1+ 0.070/2)12*2] = 1000 * 0.43796 = 437.95, or approximately438.So, interest = Face Value - Price = 1000 - 438 =562.
Using thecalculator:N = (12*2) =24, I/Y = 7.00 / 2 =3.50, FV = 1000, PMT = 0. PV = -437.95, or approximately $438
NEW QUESTION: 2
Matt, a security analyst, needs to select an asymmetric encryption method that allows for the same level of encryption strength with a lower key length than is typically necessary. Which of the following encryption methods offers this capability?
Elliptic curve cryptography (ECC) is an approach to public-key cryptography based on the algebraic structure of elliptic curves over finite fields. One of the main benefits in comparison with non-ECC cryptography (with plain Galois fields as a basis) is the same level of security provided by keys of smaller size.