Question: Shekel is evaluating a bond issued by ABC Ltd that has a face value of $1,000 and a coupon rate of 5% pa. The coupons

Shekel is evaluating a bond issued by ABC Ltd that has a face value of $1,000 and a coupon rate

of 5% pa. The coupons are paid semi-annually and the bond has 10 years to maturity and 6.5%

pa yield. If Shekel has $9,000 to invest, calculate the price of the bond and explain how many

bonds he can buy. (Show all calculations and show answer correct to two decimal places)

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