1. A bond with a face value of $2345 and a semi-annual coupon of 4.3% was...

 

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1. A bond with a face value of $2345 and a semi-annual coupon of 4.3% was originally purchased five years ago. It had, when purchased, 23 years to maturity. When purchased the bond was priced to yield 5%. < 2 a. When the bond was first purchased i. How many payments was this bond going to make? < ii. What was the value of each payment? < iii. Draw a timeline of the dates and amounts of all the payments associated with the bond. < < iv. What price was the bond originally sold for? < b. Now the bond market has changed, and other comparable bonds are offering a yield of 6%. < i. Now, how many payments are left for this bond to make? ii. What is the value of each payment? < iii. Draw a timeline of the dates and amounts of all the payments associated with the bond that remain. iv. What price will the bond sell for today? 1. A bond with a face value of $2345 and a semi-annual coupon of 4.3% was originally purchased five years ago. It had, when purchased, 23 years to maturity. When purchased the bond was priced to yield 5%. < 2 a. When the bond was first purchased i. How many payments was this bond going to make? < ii. What was the value of each payment? < iii. Draw a timeline of the dates and amounts of all the payments associated with the bond. < < iv. What price was the bond originally sold for? < b. Now the bond market has changed, and other comparable bonds are offering a yield of 6%. < i. Now, how many payments are left for this bond to make? ii. What is the value of each payment? < iii. Draw a timeline of the dates and amounts of all the payments associated with the bond that remain. iv. What price will the bond sell for today?