5 points 1. MNO Inc. has issued a bond that is to mature in 6 years. The band had a $1.000 par value and interest is due to be paid semiannually. If your required rate of return is 12 what price would you be willing to pay for the bond? [1.5 point II. Will the bond trade at discount, premium or par? 10.5 point 2. Consider a one year XYZ bond that promises a coupon rate of 8% and has a principal par value of $1,000. Further assume the bond is currently trading for 5900 1. Determine the Promised Yield to Maturity. [1 point 1. Continuing with part above, assume there is a 30% probability of default on XYZ bond and if the bond defaults, the bondholders will receive 70% of the principal and interest owed. What is the Expected Yield to Maturity? [1 point 3. List any two key relationships with reference to bond valuation 105-2-1 point