b. A bond has a face value of $1000 with a time to maturity 20 years from now. The yield to maturity of the bond now is 17%. i What is the price of the bond today, if it pays no coupons? Page 2 of 3 ii. What is the price of the bond if it pays annual coupons of 17%? iii. What is the price today if pays 15% coupon rate semi-annually? iv. What is the price today if pays 18% coupon rate quarterly? Indicate for each situation in part (i), (ii), (iii) and (iv) whether the bond is selling at a discount, at a premium or at par value. V