Does anyone can help me 2 questions.
1. A government bond with a face value of $500,000 was issued eight years ago and there are seven years remaining until maturity. The bond pays semi-annual coupon payments of $22,500, the coupon rate is 9% p.a. paid twice yearly and rates in the marketplace are 8% pa compounded semi-annually. What is the value of the bond today?
2. On 4 September 2012 a company issued a bond with a face value of $500,000 that matures exactly 20 years later. The coupon rate is 7% p.a. compounded half-yearly. What is the bond's value on 4 September 2018 assuming the market yield is 4% p.a. compounded half-yearly