Question: formula + answer please 1. The $1,000 face value ABC bond has a coupon rate of 6%, with interest paid semi-annually, and matures in 5

formula + answer please

1. The $1,000 face value ABC bond has a coupon rate of 6%, with interest paid semi-annually, and matures in 5 years. If the bond is priced to yield 8%, what is the bond's value today? (5 PTS) 2. The KLM bond has $80 yearly coupon (with interest paid quarterly), a maturity value of $1,000, and matures in 20 years. If the bond is priced to yield 6%, what is the maximum price a which you would be willing to buy the bond today? (8 PTS)

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