Find the current market values of the components of your


Your aunt is trying to determine the value of her bond portfolio and asks you for help. Find the current market values of the components of your aunt’s portfolio. (a) 75 bonds with a $1,000 face value and a coupon rate of 7.6%. These bonds have 11 years left to maturity and pay coupons on a semi-annual basis. The YTM of these bonds is 8.4%/year. What is the total market value of these 75 bonds? (b) 150 zero-coupon bonds with a $1,000 face value, 9 years to maturity, and a YTM of 7.7%/year (remember: use semi-annual compounding here). What is the total market value of these 150 zero-coupon bonds?

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Financial Management: Find the current market values of the components of your
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