. A savings bond with a face value of $1000 bearing interest at 4% payable...
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. A savings bond with a face value of $1000 bearing interest at 4% payable semi-annually matured on July 6, 2022. This bond was purchased on March 15, 2020 to yield 5.4% compounded semi-annually. On January 6, 2020, the PV of the Face Value was $875.28 while the PV of the Coupons was $92.38. There are 69 days between January 6, 2020 and March 15, 2020. There are 182 days between January 6, 2020 and July 6, 2020. (2 marks) 1. What was the Market Price of the bond on January 6, 2020? Round your answer to 2 decimal places. (1 mark) 2. What was the Cash Price of the bond on March 15, 2020? Round your answer to 2 decimal places. (1 mark)
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