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Question 2 2 pts What is the yield to maturity of a bond with the following characteristics? $1050 price today; 8% coupon, paid semi-annually: 6

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Question 2 2 pts What is the yield to maturity of a bond with the following characteristics? $1050 price today; 8% coupon, paid semi-annually: 6 years to maturity: $1,000 face value. Assume semi-annual interest compounding. Round your answer to 4 decimal places. For example if your answer is 3.205%, then please write down 0.0321. Question 3 2 pts Calculate the clean (flat) price of a bond, assuming the following, Transaction settlement date is 3-15, 2018. Bond maturity date is 9-30, 2020. Par = $100. Coupon rate is 5%, and coupons are paid semi-annually. The bond is trading at a YTM of 6%. The day-count convention is 30/360. Assume semi-annual interest compounding. Round your answer to the nearest cent (2 decimal places). Question 4 2 pts As a winner of a local competition, you can choose one of the following prizes. If the annual interest rate is 12% compounded annually, which prize is the most valuable? $170,000 at the end of 4 years $15,000 now, and $15,000 per year starting next year for 10 years $18,000 per year starting next year for 10 years $110,000 now

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