8 points A company recently issued the following 5% coupon bond. It has 18 years to maturity, and pays interest semi-annually. The bond is now trading at $950. a) What is its yield to maturity? (4 marks) b) What is the effective annual yield? (3 marks) c) What would happen to the price of the bond if the Bank of Canada reduced rates by 0.5%? (1 mark) For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BIUS Paragraph Arial 10pt Av A V I ||| - NM ||| Save