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hi can anyone help me with these? thanks ACTY 6291 Investments Semester 2 2015 Question 3: Bond Valuation 20 Marks a) A Treasury bond, maturing

hi can anyone help me with these? thanks
ACTY 6291 Investments Semester 2 2015 Question 3: Bond Valuation 20 Marks a) A Treasury bond, maturing on 15 September 2017, has a face value of $100 and pays an annual coupon interest rate of 6.50% semi-annually on 15 March and 15 September each year. The required yield on bonds of this type is 5.70%. What is the maximum price you would be willing to pay for this bond if the settlement date is 22 June 2015? Show your calculations. 5 marks A bond pays semi-annual coupons of 6.70% pa. and is currently trading at a yield to maturity of 8.00% pa. with a maturity of two years and a face value of $1,000. Calculate the duration of this bond. Show your calculations and interpret your answer. b) 5 marks

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