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3. Tennis Corp. issues a 6% annual coupon bond (coupons are paid semiannually) exactly a year prior to the due date of Problem Set 2.

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3. Tennis Corp. issues a 6% annual coupon bond (coupons are paid semiannually) exactly a year prior to the due date of Problem Set 2. At the time of the issue, that bond has 20 years to maturity. (a) Calculate the yield to maturity at the time of the 15$ue if the bond is issued at a $82. 60 discount. (b) What would be the price on the problem set due date if the bond 1s priced to yield 9%? (C) On September 27, 2017, you check the Wall Streetjournal and nd that comparable bonds are yielding 5% annually. What is the price of the bond on September 27, 2017? (d) You purchase the bond at the time of the issue (use the YTNI from part (a)) and decide to sell it on the problem set due date (use the 9% yield to maturity). What is your return on this bond trade

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