1.) BTR Co. has 9% annual coupon bonds that are callable and have 18 years left until maturity. The bonds have a par value of $1000, and their current market prices100. $35. However, BTR Co. may call Devon in eight years at a car price of $1060. what are the YTM and the yeild to call (YTC) on BTR Bonds ?

2.) Bonds often pay a coupon twice a year. For the valuation of Vons that makes semi annual payments, the number period is double, where is the amount of cash flow decreases by half. Using the values of the cash flows and numbers of period, the valuation model is adjusted accordingly. assume that $1,000,000 par value, Semi annual coupon. US treasury note with four years to maturity has a coupon rate of 4%. The yield to maturity of the bond is 7.70%.

7. Valuing semiannual coupon bonds Bonds often pay a coupon twice a year. For the valuation of bonds that make semiannual payments, the number of periods doubles, whereas the amount of cash fiow decreases by half, Using the values of cash flows and number of periods, the valuation model is adjusted accordingly. Assume that a $1,000,000 par value, semiannual coupon U.S. Treasury note with four years to matunty has a coupon rate of 4%. The yield to matunty (YTM) of the bond is 7.70%. Using this information and ignoring the other costs involved, calculate the value of the Treasury note: $743,468.74 x $1,049,602.92 $551,041.53 5874,659.10 Coupon payments are flxed, but the percentage return that investors receive varies based on market conditions. This percentage return is referred to as the bond's yield. Yield to maturity ( TM ) is the rate of retum expected from a bond held until its maturity date. However, the YTM equals the expected rate of return under certain assumptions. Which of the following is one of those assumptions? The bond is callable. The probability of default is zero. Consider the case of BIR Co.t BTR Co, has 9% annual coupen bonds that are callable and have 18 years left until maturity. The bonds have a par value of $1,000, and their current market price is $1,100,35. Howevec, BTR Co. may call the bonds in eight years at a call price of $1,060. What are the VTM and the yield to call (VrC) on BTR Cois bonds? If interest rates are expected to remain constant, what is the best estimate of the remaining life left for BTR Cois bonds? 8 years 5 years 10 years 13 years If ETR Co, issued new bonds today, the coupon rate must be for the bonds have to be issued at par