Question: Q1 and Q2 1. The bond has a par value of $5,000, with a coupon rate of 2.8 percent paid semiannually and 16 years to

Q1 and Q2

1. The bond has a par value of $5,000, with a coupon rate of 2.8 percent paid semiannually and 16 years to maturity. The yield to maturity on this bond is 3.4 percent. What is the price of the bond? 2. The bond has a par value of $1,000, with a payment made annually and 8 years to maturity. The yield to maturity on this bond is 5 percent. It is now priced at $970. What is the coupon rate

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