Question: The future value at maturity is always $1,000. All bonds pay semiannually. 1. Zero Coupon Bond with 8 year maturity. Market Rate (YTM) is 2.75%,

The future value at maturity is always $1,000. All bonds pay semiannually. 1. Zero Coupon Bond with 8 year maturity. Market Rate (YTM) is 2.75%, what is the price of the bond? 2. Coupon paying bond 5% coupon 20 year bond, market rate (YTM) is 4.5%, what is the price of the bond? Discount 3. If the coupon is lower than ytm the bond will sell at a par or premium) . (discount, 4. Calculate the ytm on the following bond: Price of the bond $980 (98) Coupon rate 3% Maturity is 11 years Call date is in 4 years

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