H Part O Conrad US DICE AR Buite OS Design Layou Relac View Tieslie RXA....! AaBI ADAC Aabbt Ace Aa A.WA Thingting? Per Question 1 (10 points) shown to students aller my approval The following sketch shows the market value of some bond as a function of time to maturity in yean. Use the sketch to determine the following you may interpolate by dewing the nece curve) Wut in the interest of this bond What is the par value of the bond? If the band reaches maturity after 12 years, what is the required rate of rehan if its value is 51300 You may solve this with the aid of approximating your own curve. If the bond reaches maturity after 19 years, what is the required rate of retum if its value is 5800. You may solve this by approximating your own curve L ++ 15001 1400 30 21200 1100 1000 30020 20 NOO 700 God ** I rato % 18 15 14 12 12 10 years 14 Solutiost 1-$100, or 10% M-51000 Draw eurves at the mentioned points: 6.5% and 13% with the State Acousand time MOGGI SecktIntent 6 H Part O Conrad US DICE AR Buite OS Design Layou Relac View Tieslie RXA....! AaBI ADAC Aabbt Ace Aa A.WA Thingting? Per Question 1 (10 points) shown to students aller my approval The following sketch shows the market value of some bond as a function of time to maturity in yean. Use the sketch to determine the following you may interpolate by dewing the nece curve) Wut in the interest of this bond What is the par value of the bond? If the band reaches maturity after 12 years, what is the required rate of rehan if its value is 51300 You may solve this with the aid of approximating your own curve. If the bond reaches maturity after 19 years, what is the required rate of retum if its value is 5800. You may solve this by approximating your own curve L ++ 15001 1400 30 21200 1100 1000 30020 20 NOO 700 God ** I rato % 18 15 14 12 12 10 years 14 Solutiost 1-$100, or 10% M-51000 Draw eurves at the mentioned points: 6.5% and 13% with the State Acousand time MOGGI SecktIntent 6