1) Lycan, Inc., has 7.4 percent coupon bonds on the market that have 6 years left to maturity. The bonds make annual payments. Required: If the YTM on these bonds is 9.4 percent, what is the current bond price?

2) The Timberlake-Jackson Wardrobe Co. has 10.9 percent coupon bonds on the market with seven years left to maturity. The bonds make annual payments.

Required:

If the bond currently sells for $1,117.33, what is its YTM?

3)

Merton Enterprises has bonds on the market making annual payments, with 18 years to maturity, and selling for $965. At this price, the bonds yield 7.7 percent.

Required:

What must the coupon rate be on Merton