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Question 4, round your answer to the nearest integer (15 marks} a. Bond X, with credit rating otAAA and market price of $1050, has a

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Question 4, round your answer to the nearest integer (15 marks} a. Bond X, with credit rating otAAA and market price of $1050, has a face value of $1,000 and matures in 10 years. The bond makes no payments for the rst six years, then pays $180 every six months over the subsequent two years, and nally pays $160 every six months over the last two years. Bond Y, with credit rating ofAA and market price of $900, has a face value of $1,000 and a maturity of 10 years; it makes no coupon payments over the life of the bond. Bond Z, with credit rating ofA and market price of ($800 + $100 x Y}, has a yield to maturity of 3%. What is the yield to maturity of Bond X? Of bond Y? Which of the above bond seems to be overpriced

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