Determine the price of the following bonds: (a) A 12-year $5000 bond, redeemable at 101.75, with coupons at i(2) = 5% for the first 6 years and at i(2) = 4.5% thereafter, bought to yield i(2) = 6% for the first 5 years and i(2) = 5.5% thereafter. (3 marks) (b) An 8-year $2000 bond, redeemable at par, with semi-annual coupons starting at $150 and each succeeding coupon being 90% of the preceding coupon, purchased to yield i(2) = 7%. (2.5 marks) (c) A 10-year $10,000 par-value bond with semi-annual coupons that starts at $280 and increase by $12 every 6-months thereafter. The desired yield rate is i(2) = 5%. (2.5 marks) (d) A perpetual bond that pays quarterly coupons of $100, with each succeeding coupon increasing by 0.75% per quarter forever, with a desired yield rat of i(1) = 6%. (2 marks)

6. Determine the price of the following bonds: (a) A 12-year $5000 bond, redeemable at 101.75, with coupons at i(2) = 5% for the first 6 years and at i(2) = 4.5% thereafter, bought to yield i(2) = 6% for the first 5 years and i(2) = 5.5% thereafter. (3 marks) (b) An 8-year $2000 bond, redeemable at par, with semi-annual coupons starting at $150 and each succeeding coupon being 90% of the preceding coupon, purchased to yield il2) = 7%. (2.5 marks) (c) A 10-year $10,000 par-value bond with semi-annual coupons that starts at $280 and increase by $12 every 6-months thereafter. The desired yield rate is i(2) = 5%. (2.5 marks) (d) A perpetual bond that pays quarterly coupons of $100, with each succeeding coupon increasing by 0.75% per quarter forever, with a desired yield rat of ill) = 6%. (2 marks)