EC3333 Tutorial 6 *For this module, unless otherwise stated, the par value of the bond is assumed to be $1000. 1 . A 30-year bond with a face value of $1000 has a coupon rate of 5.5%, with semiannual payments. a. What is the coupon payment for this bond? b. Draw the cash flows for the bond on a timeline. 2. Suppose a 10-year, $1000 bond with an 8% coupon rate and semiannual coupons is trading for a price of $1034.74. a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? (You can use the Excel solver function to do this.) b. If the bond's yield to maturity changes to 9% APR, what will the bond's price be? 3. Suppose the current zero-coupon yield curve for risk-free bonds is as follows: Maturity {years) 2 5 YTM 5.00% 5.50%% 5.75% 5.95% 6.05% a. What is the price per $1000 face value of a two-year, zero-coupon, risk- free bond? b. What is the price per $1000 face value of a four-year, zero-coupon, risk- free bond? C. What is the risk-free interest rate for a five-year maturity