3. Bond Fundamentals (12.5 marks) This question has three subquestions on bond pricing, or relevant topics. (a) A 30 year bond matures at its face value of $100. It pays semiannual coupons of $6. Calculate the price of the bond if the annual nominal interest rate is 7.5%. (b) Suppose a bond has a price today of $80o, a coupon rate of 4%, and six years remaining to maturity. If interest is paid semi-annually, what is this bond's yield to maturity? (c) Consider the following three bonds (with the same maturity and face value of $100) and their prices: Bond (Coupon rate, semiannual) Price 0% 96.375 7.5% 103.404 15% 106.0625 Are these prices correctly stated relative to each other? State clearly your arguments. (d) There is a 12% coupon bond on the market that sells for par value. What is the yield to maturity of this bond? State your reason clearly if it is not identifiable