Problem #2 Bond valuation a Calculate the issue price of the following bonds. Both bonds have a face or par value of $1,000 and pay interest semi-annually: Years to Maturity 7 12 Annual Bond or Coupon rate 4.60% 4.50% Annual Market rate Effective rate Yield to maturity 5.00% 4.00% #1 #2 b Calculate the yield to maturity for the following bonds: Both bonds have a face or par value of $1,000 and pay interest semi-annually: Years to Maturity 6 8 Annual Bond or Coupon rate 3.50% 3.20% Selling Price 994.65 1,014.13 #3 $ $ #4