Question: Answer each part separately and show all calculations. a) A $100 par value bond has a coupon rate of 8% and a coupon yield of

Answer each part separately and show all calculations. a) A $100 par value bond has a coupon rate of 8% and a coupon yield of 9%. What is the bond's market price? b) A bond offers a coupon rate of 5%. If the face value is $100 and the bond sells for $125 what is the bond's coupon yield? c) A zero coupon bond has a S100 face value, matures in 10 years, and currently sells for $78.12. What is the yield to maturity on this bond? What wil happen to the bond's price if the yield to maturity: (i) rises by 0.5% and (ii) falls by 0.5%? What general relation between yields and bond prices is being illustrated here? Answer each part separately and show all calculations. a) A $100 par value bond has a coupon rate of 8% and a coupon yield of 9%. What is the bond's market price? b) A bond offers a coupon rate of 5%. If the face value is $100 and the bond sells for $125 what is the bond's coupon yield? c) A zero coupon bond has a S100 face value, matures in 10 years, and currently sells for $78.12. What is the yield to maturity on this bond? What wil happen to the bond's price if the yield to maturity: (i) rises by 0.5% and (ii) falls by 0.5%? What general relation between yields and bond prices is being illustrated here

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