A $1000 bond that pays half-yearly coupons at 8% pa will mature in exactly 5 years. Find the purchase price if the bond is traded at: (a) 6% pa. compounding half-yearly (b) 8% pa. compounding half-yearly (c) 10% pa. compounding half-yearly Mount Shank Ltd issued bonds several years ago which now have 14 years to maturity. The bonds have a face value of $200,000 and make half-yearly coupon payments at 5.5% pa. f the YTM on these bonds is now 5.3%, what is the current bond price? 6