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4. You purchased a zero coupon bond at 585, it has 10yrs to maturity. What is the rate of return on this pure discount bond?

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4. You purchased a zero coupon bond at 585, it has 10yrs to maturity. What is the rate of return on this pure discount bond? 5. Consider a bond with a 7% annual coupon and a face value of $1,000. Complete the following table: Years to Discount Current Maturity Rate (%) Price 3 5 3 6 na 9 9 What relationship do you observe between yield to maturity and the current market value?(Please show your calculations for at least one bond price in the table. Yield to maturity is the discedunt rate in the table.) 6. Consider a coupon bond that has a $1,000 par value and a coupon rate of 10%. The bond is currently selling for $1,150 and has 8 years to maturity. What is the bond's yield to maturity? (Use excel spread sheet to solve it. Please attach your Excel file to the assignment.)

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