Question: Instructions: Please complete the following written assignment showing all calculations and formulas. Calculate all answers to two decimal places. Assignment questions: 1. A $1,000 bond

Instructions: Please complete the following written assignment showing all calculations and formulas. Calculate all answers to two decimal places. Assignment questions: 1. A $1,000 bond is purchased for $975 on March 1, 2006. The bond matures on July 1, 2025 and pays an 11% coupon. What is its yield to maturity? (Remember in the formula the time to maturity must be in years). 2. On December 16,2005 an investor buys a $35,000 face value Bell Canada, 10.35% coupon bond with a maturity date of Dec 15, 2019 for $36,453.00. Calculate the yield to maturity on this bond. 3. Calculate the price of an $8,000, 3 year bond paying 10% interest annually when the discount rate is 9%. 4. Calculate the present value of the income stream resulting from a $5,000 bond paying 9% interest semi-annually when the maturity date is 6 months from now (current market rates are 7% on comparable bonds)

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