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4. Yield to Maturity (2) a. What is the yield to maturity on a $5,000-face-value discount bond, maturing in one year, which sells for $4,000?

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4. Yield to Maturity (2) a. What is the yield to maturity on a $5,000-face-value discount bond, maturing in one year, which sells for $4,000? b. What is the yield to maturity on a simple loan for $3,500 that requires a repayment of $25,000 in five years? * To derive the yield to maturity, you may need to use Excel of a financial calculator. If you do not know how to use the tools, just write the equation.) C. . Find the price of a 8% coupon bond with a face value of $10,000, a 15% yield to maturity, and five years to maturity. Referring p 17. in Ch4. slides, show the equation to derive the price of a coupon bond. (* You do not have to calculate P. Just show a complete equation.)

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