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The 6-month and 1-year spot interest rates are both 10% per annum. For a bond that has a life of 18 months and pays a

image text in transcribed The 6-month and 1-year spot interest rates are both 10% per annum. For a bond that has a life of 18 months and pays a coupon of 8% per annum (with semiannual payments and one having just been made), the yield to maturity is 10.4% per annum. Suppose the face value of the bond is $1,000. What is the bond's price? What is the 18-month spot rate? All rates are compounded semiannually

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