A,B,C,D

2. (20 points) a) Use P- Fra,-, + Cv" and v"-1 -ia,-, to derive the alternative purchase price formula of P-C+ (Fr-Ci)a,-,; b) One bond of face value $100 with semi-annual coupons and r-0.025 costs P $75.74; A similar bond with semi-annual coupons and r-0.040 costs P $112.13; Both are "Redeemable at par in k years and have the same yield rate i. What is the yield rate i - [Hint: The formula of P = C + (Fr-Cia will be needed with n = 2k] c) Given the same information as Problem 2-b). Find n - d) Given the same information as Problem 2-b). Also, given r 0.025, i -0.035, nd n B, 80 and B, 95 for 0sts55. What is the Market Value of the bond at three months (-3) after t-th coupon paid, MP+(/6) ? 2. (20 points) a) Use P- Fra,-, + Cv" and v"-1 -ia,-, to derive the alternative purchase price formula of P-C+ (Fr-Ci)a,-,; b) One bond of face value $100 with semi-annual coupons and r-0.025 costs P $75.74; A similar bond with semi-annual coupons and r-0.040 costs P $112.13; Both are "Redeemable at par in k years and have the same yield rate i. What is the yield rate i - [Hint: The formula of P = C + (Fr-Cia will be needed with n = 2k] c) Given the same information as Problem 2-b). Find n - d) Given the same information as Problem 2-b). Also, given r 0.025, i -0.035, nd n B, 80 and B, 95 for 0sts55. What is the Market Value of the bond at three months (-3) after t-th coupon paid, MP+(/6)