Q.1. The Australian treasury is issuing 10 years bond that have face value of $100 paying half yearly coupons at 4 % p.a. . The bond mature at par. Spencer purchase the bond that are priced at a yield to a maturity of 5.2%p.a. If Lisa buys the bond from the Spencer in 2 years time for $95.115, has the yield to maturity risen or fallen?

Q. 2. The Australian treasury is issuing 10 years bond that have face value of $100 paying half yearly coupons at 4 % p.a. . The bond mature at par. Spencer purchase the bond that are priced at a yield to a maturity of 5.2%p.a. Calculate the size of each coupon payment giving your answer correct to the nearest cent.