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Canada Coupon Rate% Yield% Change 2 Year 2.25 1.862 0.076 20 Year 5.00 2.132 0.518 (a) Use the coupon rate and yield to maturity to

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Canada Coupon Rate% Yield% Change 2 Year 2.25 1.862 0.076 20 Year 5.00 2.132 0.518 (a) Use the coupon rate and yield to maturity to calculate the prices for the two bonds. Note the face value is not given. Most bond quotes are for $100,000. To make things simple assume the face value is 100. (Then the price could be interpreted as the percentage of the face value.) (b) What was price of the 20-year bond on the previous day? What is the one day holding period return (assuming no dividend is paid or imputed from Jan 22 to Jan 23)? Note: the column Change is the change in yield from the previous day. (c) Now consider a 5-year bond with yield 1.862% and price 95.4 (as a percentage of par; i.e. face value). What is the coupon (as a percentage of par)? (d) Calculate the current yield for the two bonds in the table

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