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1) Please solve for the value of the following bonds stocks and briefly explain your resulls! A) A U.S. Govemment Treasury Strip is quoted in

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1) Please solve for the value of the following bonds stocks and briefly explain your resulls! A) A U.S. Govemment Treasury Strip is quoted in the Wall Street Journal at a market price of 87:19 (87 and 19/32). If the strip is scheduled to mature in November 2023, what is the annual interest rate for this bond? (8 points). B) Xenor Corporation introduced a bond in 2001 that offered a coupon rate of 8 ipe compounded semiannually, resulting in coupon payments of S4.25. The bond is scheduled to mature in 2028. If the current going interest rate in the market is 6 34%, also compounded semiannually, what is the market price (please calculate the interest and the principal due to get Page 3 of 5

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