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1A (13 pts). Suppose that a coupon bond has a face value of $1,000, a maturity...

1A (13 pts). Suppose that a coupon bond has a face value of $1,000, a maturity of 3 years, and the holders of this bond receive a number of semi-annual interest payments and receives $1030 when the bond matures. If you are told that the yield to maturity (the interest rate on a comparable investment) for this bond is 5%, calculate the number of payments received by the holders of this bond, the present value of each of these payments, and the market price of the bond. You need to show your work, including the formulas you use in your calculations.

1B. (5 pts) Suppose you bought the bond described in 1A at the price you calculated in your answer to 1A and held for one year and then sold it for $1009. based on this information and the information provided in 1A, calculate your return on this bond

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