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what is the value of the bond? Question 2 A. You own a bond that pays $30 in annual interest, with a $1 000 par

what is the value of the bond?

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Question 2 A. You own a bond that pays $30 in annual interest, with a $1 000 par value. It matures in 20 years. Your required rate of return is 4%. Calculate the value of the bond. (4 marks) B. JNBC Motor company issued bonds with a 10-year maturity par value of $1 000, a 10% coupon rate and semi-annual interest payments. If the bond was sold for $916.42, what was the YTM of JNBC bonds at the time of the issue? (5 marks) C. Explain interest rate risk as it relates to premium and discount bonds. (4 marks) D. A bank is offering a five-year term deposit that will pay 9% per annum compounded quarterly. If $180 000 was invested in this term deposit: i. how much money will you have at the end of four years? (4 marks) ii. what is the EAR

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