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7. [10] A 10 year bond matures for $ 2000 with coupon rate 5% paid semi-annually. Moreover, the YTM is 7%. (a) [5] Determine the

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7. [10] A 10 year bond matures for $ 2000 with coupon rate 5% paid semi-annually. Moreover, the YTM is 7%. (a) [5] Determine the price of the bond (note that all the rates are semi-annually); (b) [5] Determine the size of the discount if it is a discount bond (Face value minus price of the bond). 8. [10] A $ 5000 bond with semi-annual coupons at (2) = 5% and YTM at 4% will mature on December 31, 2030. (a) [5] What is the price of the bond on February 28, 2020 if the settlement date was January 1, 2020? (Use Actual/Actual.) (b) [5] Find the clean price of the bond on February 28, 2020 in case of (a). (Note that the result should be transformed to the quoted price.)

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