Question: Question 2: Bonds and Bond Valuation (10 marks) a) E-Learning Company will issue a zero-coupon bond this coming month. The projected yield for the bond

Question 2: Bonds and Bond Valuation (10 marks) a) E-Learning Company

Question 2: Bonds and Bond Valuation (10 marks) a) E-Learning Company will issue a zero-coupon bond this coming month. The projected yield for the bond is 5%. The par value of the bond is $1,000. [Show all steps, workings, and formula(s) clearly. Round final answer to two decimal places, where applicable.] i. What is the amount of coupon payment? Briefly comment on your answer. ( 0.5 mark) Click here to enter text. ii. What is the price of the bond using a semi-annual convention if the maturity is 30 years? (1.5 marks) Click here to enter text

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