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Question 4. (35 marks) A bond has a coupon rate of 6 percent, a maturity date of 1st June 2032, a par value of f1000,

Question 4. (35 marks) A bond has a coupon rate of 6 percent, a maturity date of 1st June 2032, a par value of f1000, a current value of 1984.50 and coupon frequency is semi-annual. a. If today is 1st June 2022, calculate the yield to maturity (YTM) of the bond. (20 marks) b. Use the YTM calculation in the previous part to calculate the current price of the bond and discuss your findings. (15 marks)

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