Question: Assignment 2 Please answer all questions clearly, and show your work. You may work in pairs. Please make sure only one member per pair submits

 Assignment 2 Please answer all questions clearly, and show your work.

Assignment 2 Please answer all questions clearly, and show your work. You may work in pairs. Please make sure only one member per pair submits the completed assignment. 25 points total. 1. A firm issues bonds with a maturity of 15 years, a 10% coupon rate, and a face value of $1,000. The bonds make annual coupon payments. If the yield to maturity is 12.5%, what is the price of the bond? (4 points)

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