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3. (5 marks) Suppose that a 10 percent semi-annual bond is selling at par. a. What is the bond's (2 marks) i. Price today? ii.
3. (5 marks) Suppose that a 10 percent semi-annual bond is selling at par. a. What is the bond's (2 marks) i. Price today? ii. Face value? iii. Coupon? iv. YTM? b. Suppose in two years the YTM on the bond has changed to 7 percent. What is the coupon rate now? (1 mark) c. What is the same bond selling for today if the YTM is 7 percent, there are 10 years left to maturity, and the coupon rate is instead 8 percent? ( 2 marks)
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