#s 5,6,7 and 8. I am trying to figure out what to plug into my finance calculator to solve for PV (price of abc bond)

N=(8+12)*2=40

I=6%/2=3%

PV=?

PMT=(1000*(.086/2))=43

FV=(1000)

Name ele Zcoly Assignment3 Due on the day of Exam3 ABC has $1,000 par value, 86% coupon bonds outstanding. The bonds were issued 8 years ago, will mature in 12 years, and pay a semiannual coupon. XYZ is about to issue bonds and they would like the bonds to sell for par ($1,000). In order for their bonds to sell at par, they will need to issue the bonds with a 10.2% coupon rate with semiannual payments. The bonds will be issued with a 20 year maturity The bonds of ABC and the bonds of XYZ are very similar in risk level and should require the same return. . 1. What coupon interest rate does ABC bonds pay? (1) 2. What coupon interest rate will XYZ bonds pay? (l) 3. Assuming that ABC's bonds sold for par when initially issued, what was the required rate of return (YTM/market interest rate) when the bonds were initially issued? (1) 4. IfXYZ's bonds are sold today for par, what is the required rate of return (YTM/market interest rate) today? (1) 5. How much do ABC's bonds need to yield to convince you to purchase their bonds today? (1) 6. Find the price of ABC's bonds today based on the rate you found in #5. (2) 7, Based on the price you found in #6, ABC's bonds are selling at a because the coupon rate is than the market rate (2). 8. If you purchase ABC's bonds today for $1,020, what will be your YTM? What is your capital gain yield? What is your current yield? Make sure to label each yield. (4)