Question: a) What are the important bond features. Describe each feature what they indicate. What are Discount Bonds and Premium Bonds? (10 Marks) b) Suppose a

a) What are the important bond features. Describe each feature what they indicate. What are Discount Bonds and Premium Bonds? (10 Marks)

b) Suppose a bond with a 10% coupon rate and semiannual coupons has a face value of $1000, 20 years to maturity and is selling for $1197.93. (10 Marks)

Is the YTM more or less than 10%?
What is the semiannual coupon payment?
How many periods are there?

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