1.Calculate the price of these bonds. SHOW YOUR WORK.(4 marks)

a) 4-year Quebec 6.00% semi-annual, $100 par value. Investors require a yield to maturity of 7% compounded semi-annually.

Mode=

N=

P/Y =

C/Y=

I/Y=

PMT=

FV=

PV =

b) 4-year Government of Alberta strip bond, $100 par value. Investors require a yield to maturity of 7% compounded annually.

Mode=

N=

P/Y =

C/Y=

I/Y=

PMT=

FV=

PV =