Question: Question 3 a) Systematic has a bond issue outstanding that pays $ 50 coupon annually. It has a face value of $1000, and it will

Question 3 a) Systematic has a bond issue outstanding that pays $ 50 coupon annually. It has a face value of $1000, and it will mature in 10 years. Similar bonds are priced to yield 8%. What would you expect this bond to sell for? b) Systematic's bonds have a coupon rate of 6% and matures in 12 years . Assume a semi-annual coupon payment, what is the value of the bond , assuming similar bonds yield 8%. Face value =$1000 (7 marks)

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