Question 2. (10%) 2.1 A bond with semi-annual coupon payments is dated on January 1, 2021, and is issued on that date. The face value of the bond is $1,000,000, and the market rate of interest is 8% at the time of issuance. The bond will mature in 13 years. Calculate the issue price of the bond (show all your calculations) if the coupon rate is: 1. 0% 2. 4% 3. 8% Briefly evaluate the following statement (No calculations needed): Bond issuance price decreases as coupon rate decreases, holding all other factors (market rate of interest, times compounded in a period and number of periods) constant. 2.2 A bond with semi-annual coupon payments is dated on January 1, 2021, and is issued on that date. The fa value of the bon $1,000,000, the coupon rate is 12%, and ma ket rate of interest at the time of issuance. The bond pays interest semi-annually. Calculate the issue price of the bond if the bond will mature in (Show all your calculations): 1. 1 year 2. 10 years 15 years 3. Briefly evaluate the following statement (No calculations needed): Bond issuance price decreases as number of periods increases, holding all other factors (market rate of interest, times compounded in a period and number of periods) constant