XYZ Corp has bonds on the market with 7.5 years to maturity, a YTM of 6 percent, and a current price of $1,000. The face value is $1,000. The bonds make semiannual payments. What must be the dollar coupons (dollar amount, not percentage) paid every six-months on XYZ's bonds? Hint: A YTM of 6% for a semiannual bond is a reporting convenience. It implies the actual 6 month return is 3%. You need to use the annuity formula to solve this one. Your Answer: Answer Question 5 (1 point) Perpetual bond, which is also known as a perpetual or just a perp, is a bond with no maturity date. Issuers pay coupons on perpetual bonds forever, and they do not have to redeem the principal. Perpetual bond cash flows are, therefore, those of a perpetuity. A perpetual bond pays coupons of 4% every year on a face value of $1,000. The rate of return on the bond is 10.00% every year. What is the price of the bond? Hint: Use the perpetuity formula. Remember the rate of discount and rate of return are one and the same thing Address 1144 AM 10/17/2019