Question: Question 1 (this question has two parts a) and b) Part a) The table shows term to maturity of Australian bonds and their respective yields

Question 1 (this question has two parts a) and b)

Part a)

The table shows term to maturity of Australian bonds and their respective yields on 22 April 2021. Using this information answer the following questions.

Question 1 (this question has two parts a) and b)

Term to Bond Maturity Yield 1 year 0.07% 2 years 0.07% 5 years 0.70% 10 years 1.66% 20 years 2.42% 30 years 2.64%Bond Face Value Coupon rate Yield to Maturity Term to Maturity A $1000 8% paid annually 10% 3 B $1000 8% paid semi- 10% 3 annually

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