1). A bond pays a coupon of AED 115 every April 1^st for 5 years. Today is October 1, 2019; In September 30rd, 2029 it pays an additional $1,000. YTM is 7.5%. What is the value of the bond?

2). In April 2020 you purchase 100 euros of bonds in Greece which pay a 5% coupon every year. If the bond matures in 2025 (five years) and the YTM is 3.0%, what is the value of the bond?

3). Sheikha just graduated from ZU major in Finance and immediately found a good job in a bank. She plans her retirement. Hence, she contacted an insurance company and she has (a) to choose invest 1,500 aed per quarter at 7.3% compounding for 32 years or invest the corresponding amount of money annually, and (b) to choose when to make payments; at the beginning or the end of the period.

Questions. (I). In which account will I have more money and by how much? (II). Which account will earn the most interest and by how much?

4). Suppose you buy a zero-coupon bond at AED 100. The bond matures in 5 tears and its face value is AED 1,000. Calculate the YTM.

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