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1. You are considering the purchase of a bond that is currently trading for 102.5 and matures in 8 years. The bond has a coupon

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1. You are considering the purchase of a bond that is currently trading for "102.5" and matures in 8 years. The bond has a coupon rate of 10.5% and pay interest semi-annually. What is yield to maturity? (Draw a time line) 2. Suppose Ford issues bonds with 15-year maturity, 11.6% coupon rate, and semiannual interest payments A. Suppose the market interest rate is 9%. At what price would the bonds sell? (Draw a time line) B. What would be the current yield under this case

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