MATURITY COUPON BID ASKED CHG ASKED YIELD 2/15/24 0.125 99.23 99.234 0.006 0.214 1. WHAT ARE THE PAYMENTS MADE BY THE BOND YOU CHOSE? FILL OUT THE TABLE OF PAYMENTS BELOW: TIME TO PAYMENT (EXPRESSED IN YEARS) DOLLARS PAID 2/19/21 B/15/21 2/15/22 8/15/22 2/15/23 B/15/23 2/15/24 2. WHAT IS THE CURRENT MARKET PRICE OF YOUR BOND (ASSUMING YOU WANT TO BUY IT)? 3. CHECK THAT THE ASKED YIELD REPORTED IN CELL $F$9 ABOVE IS THE YIELD TO MATURITY OF YOUR BOND. REPORT YOUR CALCULATIONS BELOW.- Structure of a bond: o A bond is going to make one big payment (principle) that will occurs at the end of its maturity, at the time it expires. We can set this principle equal to $100 dollars (par value of this bond). Between now and their maturities the bonds are going to pay intermediate coupon payments. - Question 1: Calculate what is the time to a payment that this bond is going to make and will express this time to payment in years (so that's going to be some fraction of a year), and what is the amount of dollars that are going to be paid this bond? o When do these coupon payments occur (the last coupon payment is aligned with the expiration date)? Translate the coupon rate into the amount of dollars paid by in each of these coupon payments. Show your work! - Question2: o Translate the bid and asked quotes into the current market prices of the bond! In Particular if you want to buy this bond what is the current price you would need to pay to buy it? - Question 3: P Bo = > + (1+ "YTMT 2 2 Recall that P = $100