2:24 PM HW 5 G.Aliseo iPad Home Insert Draw Layout Review View Calibri Regular (B 11 B I U A. Q3 Bond Pricing Y Corp bonds has a 10% coupon rate and a $1,000 face value. Interest is paid semiannually, and the bond has 20 years to maturity. Assume the investor require 12% yield. (Hint, there are 20*2 = 40 payment periods, and the compounding rate for each period-12%/ 2-6%) Q3-1: Bond specifications & Pricing with Excel Bond specifications Pricing with excel Yield to maturity / per Years to maturity Par Years to maturit Yield to maturit coupon rate coupon per year face value Rate npery annual coupon per par payment made at end of periods Nper annual Pmt FV percentage rate coupon rate * par # of payment per year Type Npe use excel pv function answer PV rice Q3-2: What is the effective annual yield on the bond? Explain why effective annual yield is different from the APR? (Hints: use excel effect function) APR = Nominal rate = ? Npery = # of payments per year = ? Effective rate