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In February 2.37. Is this a premium or a discount bond? What is its current yield? What is its yield to maturity? What is the bid-ask spread for a 51,000 par values bond? Zero Coupon Bonds. You find a zero coupon bond with a par value of $10,000 and 17 years to maturity. If the yield to maturity on this bond is 4.9 percent, what is the price of the bond? Assume semiannual compounding periods. Valuing Bonds. Yan Yan Corp, has a $2,000 par value bond outstanding with a coupon rate of 4.9 percent paid semiannually and 13 years to maturity. The yield to maturity of the bond is 3.8 percent. What is the price of the bond? Valuing Bonds. Union Local School District has bonds outstanding with a coupon rate of 3.7 percent pain semiannually and 16 years to maturity. The yield to maturity on these bonds is 3.9 percent and the bonds have a par values of $5,000. What is the price of the bonds? Bond Price Movements. Bond X is a premium bond making semiannual payments. The bond has a coupon rate of 8.5 percent, a YTM of 7 percent, and has 13 years to maturity. Bond Y is a discount bond making semiannual payments. This bond has a coupon rate of 7 percent, a YTM of 8.5 percent, and also has 13 years to maturity. What are the prices of these bonds today assuming both bonds have a $1.000 par value? If interest rates remain unchanged, what do you expect the prices of these bonds to be in one year? In three years? In eight years? In 12 years? In 13 years? What's going on here? Illustrate your answers by graphing bond prices versus time to maturity. Interest Rate Risk. Both Bond Bill and Bond Ted have 6.2 percent coupons, make semiannual payments, and are priced at par values. Bond Bill has 5 years to maturity, whereas Bond Ted has 25 years to maturity. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of Bond Bill? Of Bond Ted? Both bonds have a par value of $1,000. If rates were to suddenly fall by 2 percent instead, what would the percentage change in the price of Bond Bill be then? Of YTM. What does this