Q7. A corporate bond value with an annual interest rate of 5%, making semi-annual payments. After two years, the bond matures and repaying the principal. For our

Compute the price of bond for the following situations. Make for each bond you calculate the PV of coupon payments, PV of the principle amount, and the price.

Bond A coupon rate 0%, YTM 5%, Years to maturity = 1 year

Bond B coupon rate 6%, YTM 7%, Years to maturity = 5 years

Bond C coupon rate 6% paid semi-annually, YTM 7%, Years to maturity = 5 year

Bond D coupon rate 10%, YTM 9%, Years to maturity = 10 years

Bond E coupon rate 10%paid semi-annually, YTM 9%, Years to maturity = 10 years

Bonds	PV OF COUPON PAYMENTS	PV OF MATURITY PAYMENTS	PRICE OF BONDS
A
B
C
D
E

Q8. Exercise 3.2