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3 Question 3 (16 points) 1 Listen Air Canada offers a 6.5% coupon bond with annual payments. The yield to maturity is 6.71% and the

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3 Question 3 (16 points) 1 Listen Air Canada offers a 6.5% coupon bond with annual payments. The yield to maturity is 6.71% and the naturty dates 7 years from today. The face value is $1,000? A) What is the market price of this bond now? (4 marks) B) What is the market price of the bond if coupons have semi-annual payments? (4 marks) C) What is the market price of the bond if coupons have semi-annual payments and maturity date is 5 years from today? (4 marks) D) What is the coupon if the maturity date is 5 years from today and the price is $981.31. d murks/ SHOW ALL CALCULATIONS INCLUDING FORMULAS USED

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