Question: 1. How much would you pay today for a bond that has a face value of $1,000, and annual coupon of $67 and a maturity

How much would you pay today for a bond that has a face value of $1,000, and annual coupon of $67 and a maturity of 5 years? (=what is the price of the bond?)

The annual interest rate is 6.45%?

Bond E has the following features:

Face value = $1,000, Coupon Rate = 5%,

Maturity = 5 years, Yearly coupons

The market interest rate is 3.63%

If interest rate remains at 3.63% for the life of the bond (i.e., 3.63 years), what is the price of Bond E in year 2?

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