Question 1 Present value: Year cash flow PVIF10% PV 0 50 1 50 1 100
2 75
3 50
PV
Question 2 Deposit100 Interest rate % Compounded daily Period9 months Amount at October 1:

Question 3 Yield to maturity: Period 10years 9% annual coupon 1,000 par value bond Sells for Coupon payment 9%1,000 90 YTM C coupon payment F face value P price N years to maturity YTM % Yield to maturity: Period 10years 9% annual coupon 1,000 par value bond Sells for 1, Coupon payment 9%1,000 90 YTM % A bond that is selling above its par value is said to trade at a premium. A bond that trades at a premium has a coupon rate higher than the required return. A bond...