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1. [4 pts) Construct the amortization schedule (table) for a five-year annual coupon bond with face value and redemption value of $20,000. The bond has

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1. [4 pts) Construct the amortization schedule (table) for a five-year annual coupon bond with face value and redemption value of $20,000. The bond has an annual coupon rate of 8% and is purchased at a price which yields 4%. 2. [4 pts) A seven-year bond with semiannual coupons and an annual coupon rate of 8.6% has a face value of $50,000. The bond is redeemable for $45,000 at end of term and is callable at this same amount in years 4 through 7. Suppose the the price is $56,973. (a) What is the maximal annual yield rate convertible semiannually to the investor? (b) What is the minimal annual yield rate convertible semiannually

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