When the market value of a bond is above the face value, the bond is said to be trading at: a discount. O a premium par. O a capital gain. Consider a 5 year, $500 bond with a coupon rate of 2-6%. What price would an investor be willing to pay for the bond if they wanted a return on their investment of j2=7%? Your Answer: Answer A company just issued a ten-year, $10,000 bond with a coupon rate of j2-6.18%. What price would an investor be willing to pay for the bond if they wanted a return on their investment of j2=10%? Your Answer: Answer The City of Victoria has just issued $500,000 in 10-year bonds. They are required to establish a sinking fund in order to save enough money to pay the bond redemption when it comes due. How much must they deposit at the end of every six months into an account earning 12-4% in order to save the $500,000? Your Answer: The owners of a condominium building wish to save enough money to replace the roof on their building in 10 years. The new roof is projected to cost $40,000. How much must they deposit monthly into an account earning j12-3% in order to have enough money for the new roof? Your Answer: Rick just purchased a ten year, $5,000 bond with a 4% coupon rate for $4.930. Calculate the yield rate that Rick will earn (nominal, semi-annual). Express your answer as a percent to 2 decimal places but don't include the % sign. Your