4. A Metallico bond carries a coupon rate of 8%, payable semi-annually, has 9 years until maturity, and sells at a yield to maturity of 9%. a. What interest payments do bondholders receive each year? b. At what price does the bond sell? 4 Coupon Rate = 8% Cannually) Semi Annually = 41 Coupon Payment Semi Annually : $40 time - Qyears. 9x8 = 18 (time periods) a) Bond holders receive $40 semi annually. Hence, each year they receive $80 b) BV = 401 1 + 1000 XT 0.04 0:04 (1+0.04) Bond Value $506.37 + $ 493.628 = 999.99 ~ 1000 Hence, bond value = * {1+000] 18 ((1+0-04)18 $1000