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answer second question please I) Mr. Smith buys a $1,000 bond in the secondary market which carries a semi-annual coupon of 10%. The bond has
answer second question please I) Mr. Smith buys a $1,000 bond in the secondary market which carries a semi-annual coupon of 10%. The bond has 9 years until maturity. If the yield-to-maturity in today's market is 9%, what price should Mr. Smith pay for the bond? II) A corporation issues a special 20-year $1000 bond that has no coupons. Rather, interest will be accumulated on the bond at a rate of 11% per year (EAR) for the life of the bond. At the time of maturity, the total value of the bond will be paid off, including all accumulated interest. What is the current price of the bond if the yield is 10%
answer second question please
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