3. Suppose you own bonds of ATL Corporation and you observe the following characteristics of the bonds in the market today, March 19, 2021. Face value = 1000, coupon rate 4.75%, market yield 3.5%, maturity date May 1, 2024. Interest payment dates are: MAY 1, NOVEMBER 1.

a. Compute the accrued interest on the bond if you decide to trade the bond today in the market.

b. Assuming you expect the market yield on the bond to remain relatively stable at 3.5% over the next 5 years, how much would you sell the bond for on May 1, 2021?

c. Based on your answer to part (b), what is the value of the bond as at March 19, 2021? d. Discuss an alternative method for estimating bond price as at March 19, 2021