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A corporation issued 14-year bonds on 31 Jan 2011. Each of these bonds has a face value of $11,000 and they are currently trading at a yield of 12.06% per annum. The bonds pay quarterly coupons at an annual rate of 9.75% per annum. (a) Compute the price of each bond of the corporation on the settlement date (07-Jan-2016). This is the "clean price", excluding any accrued interest. Please use Actual/Actual as the interest rate basis. (b) Use Goal Seek to find the YTM that would justify a price of exactly $9,000 for each of these bonds. Outline the steps you have used to obtain the answer. (5 marks) A corporation issued 14-year bonds on 31 Jan 2011. Each of these bonds has a face value of $11,000 and they are currently trading at a yield of 12.06% per annum. The bonds pay quarterly coupons at an annual rate of 9.75% per annum. (a) Compute the price of each bond of the corporation on the settlement date (07-Jan-2016). This is the "clean price", excluding any accrued interest. Please use Actual/Actual as the interest rate basis. (b) Use Goal Seek to find the YTM that would justify a price of exactly $9,000 for each of these bonds. Outline the steps you have used to obtain the

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