This question is worth 10 marks in total. This is a written calculation question, and you should perform the necessary calculations/working on paper to later be scanned and uploaded. Start a new page for this question. For dollar amounts, give your answer to the nearest cent. For interest rates, give our answer as a percentage rounded to 2 decimal places. If any parts of the question use values from earlier parts, use the EXACT values from earlier parts. QUESTION START a) Describe the key feature of a zero-coupon bond. (1 mark) b)"The price of a zero coupon bond should be equal to its face value." True or false? Explain. (2 marks) c) You just purchased a 20-year semi-annual coupon bond with a par value of $1,000 and a coupon rate of 7.5%. The nominal yield to maturity is 8.5% per annum. Calculate the market price of the bond. (2 marks) d) Three years later, immediately after receiving the sixth coupon payment, you sell the bond to your best friend. Your best friend's nominal yield to maturity is 9% per annum. Calculate the price paid by your best friend. (3 marks) e) Write down an equation that can be solved to find the return as a nominal annual rate compounding half-yearly on your investment, assuming you sold the bond to your best friend as described in part d). You do NOT need to solve this equation. (2 marks) QUESTION END You will need to scan this question and upload it to iLearn via the Final Exam submission link. Please disregard the box below (or enter anything you want into it), it doesn't have any effect on your grade