Question: 2) a) Suppose that a 10-year bond has a face value of $1,000 and a coupon rate of 8%. Coupons are paid semi-annually. If the

2) a) Suppose that a 10-year bond has a face value of $1,000 and a coupon rate of 8%. Coupons are paid semi-annually. If the bonds price is $980, what is the relationship between the bonds yield and its coupon rate? b) A 20-year bond has a face value of $1,000 and a coupon rate of 5%. Coupons are paid annually. If the yield to maturity of the bond is 4%, what is the relationship between the bonds price and the face value?

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