1. [15 points] First, calculate the value of a corporate bond using the information below. Do this calculation by hand and show all of your work! Second, convert the value to price; round to 3 decimals. Settlement Date: 5/15/2016 Maturity Date: 5/15/2018 Coupon rate: 4.50% UST Yield: 2.25% Spread (bps): 125 Yield to Maturity: Calculate from Above Information

1. [15 points] First, calculate the value of a corporate bond using the information below. Do this calculation by hand and show all of your work! Second, convert the value to price; round to 3 decimals.

Settlement Date: 5/15/2016
Maturity Date: 5/15/2018

Coupon rate: 4.50%
UST Yield: 2.25%
Spread (bps): 125

Yield to Maturity: Calculate from Above Information

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