Question: Question 36 (5 points) Assumptions and Formula Sheet Your friend didn't budget his money very well and now has no money to get through the

 Question 36 (5 points) Assumptions and Formula Sheet Your friend didn't

Question 36 (5 points) Assumptions and Formula Sheet Your friend didn't budget his money very well and now has no money to get through the rest of the term. He approaches you and asks if you are willing to buy a bond he owns. He is selling it for $901.32. The bond is a TD 5.5 of 2034 (matures in 15 years). It has a face value of $1,000 and similar risk bonds issued today are yielding 6.5%. Assume interest is compounded semi-annually and coupon payments are received semi-annually. 5 marks a. Whatr value should be used in the calculations? b. How much will TD give you for the bond at the end of 2034? c. How much will each coupon payment be? d. What is the value of this bond? e. Why is your friend selling the bond at a price that is not equal to its face value

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