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1. 15 years ago, Ziza Ltd. had bonds on the market with 25 years to maturity, a YTM of 12%, a face value of $1,000

1. 15 years ago, Ziza Ltd. had bonds on the market with 25 years to maturity, a YTM of 12%, a face value of $1,000 and a price of $950 at that time. The bonds make semiannual payments. The current YTM in the market for the bond is 15%. a. What is the value of the bond of Ziza Ltd. today? (10 points) b. What is the current yield of the bond today? (3 Points)

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