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6. [Total: 17 marks] A $500 bond, issued on 15 June 2016 and redeemable at par on 15 December 2020, pays semi-annual coupons at r(2)

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6. [Total: 17 marks] A $500 bond, issued on 15 June 2016 and redeemable at par on 15 December 2020, pays semi-annual coupons at r(2) = 5%. (a) [2 marks] Find the bond coupon value, and the redemption value. (b) (5 marks] In order to yield 7% per annum compounded semi-annually, what is the purchase price on the issue date? (c) (10 marks] If the bond holder wants to sell it on 10 January 2018, assuming that the yield is 9% per annum compounded semi-annually, find the accrued bond interest, market price, and the market quotation on 10 January 2018

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