A)

What is the yield to maturity of a bond with the following characteristics?

• $1050 price today;
• 7% coupon, paid semi-annually;
• 6 years to maturity;
• $1,000 face value.

Assume semi-annual interest compounding. Round your answer to 4 decimal places. For example if your answer is 3.205%, then please write down 0.0321.

B)

Calculate the clean (flat) price of a bond, assuming the following.

• Transaction settlement date is 4-15, 2018.
• Bond maturity date is 9-30, 2020.
• Par = $100.
• Coupon rate is 5%, and coupons are paid semi-annually.
• The bond is trading at a YTM of 7%.
• The day-count convention is 30/360.

Assume semi-annual interest compounding. Round your answer to the nearest cent (2 decimal places).