The bond elon today Question #1 (25 marks) has A 10-year, 10% semiannual coupon bond was issued on March 5th 2016 (exactly two years ago a provision that allows it to be callable on March 5th 2022 at 105% of the face value L buy March 5th) for $1,140.50, then what is my expected a) YTM b) YTC Question #2 (25 marks) A company's 5-year bonds are yielding 7% per year Treasury bonds with the same maturity are yielding 52% per year, and the real nsk-free rate (*) is 2.75%-The average inflation premium. is 2.05%; and the maturity risk premium is estimated to be 0.1 x (t-1)%, where t-number of years to maturity. If the liquidity premium is 0.7%, what is the default risk premium on the corporate bonds? Question #3 (25 marks) An investor has two semiannual 1 1% coupon bonds in his portfolio that have a face value of $1,000. Bond L matures in 12 years, while bond S matures in 2 years, if the going interest rate is 6%?, then a) what is the value of Bond L and b) what is the value of Bond S? Question #4 (25 marks) You read in the Wall Street Journal that 30-day T-bills are currently yielding 5.8%, and 30 year T-bonds are yielding 7.65%. Your brother-in-law, a broker at Safe and Sound estimates of current interest rate premiums: Securities, has given you the following -Inflation Premium-3.25% Liquidity Premium-0.6% -Maturity Risk Premium = 1.85% Default risk premium-2.15% On the basis of these data, a) What is the real risk-free rate of return for the T-bill? b) What is the real risk-free rate of return for the T-bond