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6 points A 4% semi-annual coupon U.S. Treasury bond (PV is 51000) with 10 years to maturity is priced at $981.20. (a) What is the

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6 points A 4% semi-annual coupon U.S. Treasury bond (PV is 51000) with 10 years to maturity is priced at $981.20. (a) What is the yield to maturity for the Treasury bond? (express answer a percentage to 2 decimal places) Now assume that Kits Industries, an AA rated firm is trying to issue 10 year bonds to finance a 514 million project. These bonds are to pay 5 semi-annual coupons and have a face value of $1000. AA rated bonds of similar maturity have a credit spread of 1.75% over treasures (b) At what price do you estimate Kits Industries to be able to issue these bonds for? (calculate your answer as a percentage to 2 decimal placer) (C) How many bonds does Kits need to issue to reach its financing goal?(round to the nearest whole number

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