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(20 points) A $5000 bond matures in 6 years and redeems at $550. It gives annual coupons at the end of the year. The coupon
(20 points) A $5000 bond matures in 6 years and redeems at $550. It gives annual coupons at the end of the year. The coupon rate is 3% and the yield to maturity is 6%. (a) (10 points) In the amortization table of the bond, what is the outstanding balance (book value) at start of the fourth year? (b) (10 points) How much principal was repaid by the coupon paid at the end of the third year? (20 points) A $5000 bond matures in 6 years and redeems at $550. It gives annual coupons at the end of the year. The coupon rate is 3% and the yield to maturity is 6%. (a) (10 points) In the amortization table of the bond, what is the outstanding balance (book value) at start of the fourth year? (b) (10 points) How much principal was repaid by the coupon paid at the end of the third year
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