Solve the questions:

1. Bond issue (5pts) To support its growth, the CSM has decided to raise capital through a bond issue. The bond is expected to mature in 15 years and bear a nominal interest rate of 6% APR, compounded on a semiannual basis. The par value of the bond will be 1,000. 1. If the bond is priced to yield 8% (APR), what will be the issue price? (1,5pts) 2. For the bond to be traded at par, what must be the YTM (expressed as APR?) The YTM = coupon rate ie 6% APR (1pt) 3. If the bond is priced to yield 4% (APR), what will be the issue price? (1.5pts) 4. The company's manager would like the bond to be selling at a premium. If the bond price is 1,200. What would be the bond's yield to maturity? (1pt)