Assume that a bond will make payments every six months as shown on the following timeline (using six-month periods): a. What is the maturity of the bond (in years)? b. What is the coupon rate (as a percentage)? c. What is the face value? Your company wants to raise $11.0 million by issuing 25 -year zero-coupon bonds. If the yield to maturity on the bonds will be 7% (annual compounded APR), what total face value amount of bonds must you issue? The current zero-coupon yield curve for risk-free bonds is as follows: What is the price per $100 face value of a two-year, zero-coupon, risk-free bond? The current zero-coupon yield curve for risk-free bonds is as follows: What is the risk-free interest rate for a five-year maturity? Suppose a ten-year, $1,000 bond with an 8.5% coupon rate and semiannual coupons is trading for $1,034.86. a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? b. If the bond's yield to maturity changes to 9.6% APR, what will be the bond's price? Suppose a five-year, $1,000 bond with annual coupons has a price of $903.24 and a yield to maturity of 5.6%. What is the bond's coupon rate? Suppose that General Motors Acceptance Corporation issued a bond with 10 years until maturity, a face value of $1,000, and a coupon rate of 7.4% (annual payments). The yield to maturity on this bond when it was issued was 6.1%. What was the price of this bond when it was issued? Your company currently has $1,000 par, 6.75% coupon bonds with 10 years to maturity and a price of $1,087. If you want to issue new 10-year coupon bonds at par, what coupon rate do you need to set? Assume that for both bonds, the next coupon payment is due in exactly six months. The following table summarizes the yields to maturity on several one-year, zero-coupon securities: a. What is the price (expressed as a percentage of the face value) of a one-year, zero-coupon corporate bond with a AAA rating? b. What is the credit spread on AAA-rated corporate bonds? c. What is the credit spread on B-rated corporate bonds? d. How does the credit spread change with the bond rating? Why