Homework \#3 A) A new bond was issued from a utility company. The bond has a coupon rate of 6% compounded semi-annually and a life of 10 years. The face value (or Par Value) of the bond is $1,000. What would you pay for the bond today? B) Two years later, assume interest rates rise to 10% for like kind securities in the market, what is the value of the bond now? C) Assume someone purchased the bond in year 2 for $850 instead of the value you calculated in part B. If the person holds the bond until maturity what is their Yield to Maturity (YTM)