2) a) Your company wants to raise $9.5 million by issuing 30-year zero-coupon bonds. If the yield to maturity on the bonds will be 9%(annual compounded APR),

what total face value amount of bonds must you issue?

b)

The current zero-coupon yield curve for risk-free bonds is as follows:

Maturity (years)	1	2	3	4	5
YTM	5.05%	5.47%	5.78%	5.93%	6.04%

What is the price per $100 face value of a two-year, zero-coupon, risk-free bond?

The price per $100 face value of the two-year, zero-coupon, risk-free bond is $66. (Round to the nearest cent.)

4)

The current zero-coupon yield curve for risk-free bonds is as follows:

Maturity (years)	1	2	3	4	5
YTM	4.96%	5.53%	5.76%	5.96%	6.06%

What is the risk-free interest rate for a five-year maturity?

The risk-free interest rate for a five-year maturity is ... %.

(Round to two decimal places.)

5 )

Suppose a five-year,$1,000 bond with annual coupons has a price of $898.96 and a yield to maturity of 6.3%.

What is the bond's coupon rate?

The bond's coupon rate is ......%. (Round to three decimal places.)