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Hestia Direct is issuing a new D-rated, eleven-year bond at a face value of $2,000.00 with a coupon rate of 29.1% APR. Coupons are paid

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Hestia Direct is issuing a new D-rated, eleven-year bond at a face value of $2,000.00 with a coupon rate of 29.1% APR. Coupons are paid at the end of every four month period. The yield to maturity of government bonds with a similar coupon payment frequency and similar time until maturity as Hestia Direct's new bond is 5.7% APR. Given the above information, which of the following is closest to the market price at which Hestia Direct will be able to issue their new bond? Assume that after evaluating other bonds in the market with a similar D credit rating, you expect Hestia Direct's new bond to trade with a credit spread of 16.2%. O a. $7,354.46 O b. $2,446.81 c. $5,855.82 O d. $2,594.53 O e. $2,593.25 Of $5,824.65 O g. $2,666.10 O h. $2,521.07 The zero-coupon government-bond yield curve currently shows the following rates: 1-year 2-year 3-year 4-year 5-year 5.06% 1.76% 6.05% 8.06% 10.41% What is the price of a four-year government bond that pays annual coupons at a rate of 16.0% APR and has a face value of $1,700? a. $2,298.97 O b. $2,168.21 O c. $2,195.89 d. $2,182.73 e. $2,214.36 Of. $2,146.47 O g. $2,268.16 h. $2.228.54

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