Question
1. Lycan, Inc., has 8.7 percent coupon bonds on the market that have 10 years left to maturity. The bonds make annual payments and have
1. Lycan, Inc., has 8.7 percent coupon bonds on the market that have 10 years left to maturity. The bonds make annual payments and have a par value of $1,000. If the YTM on these bonds is 10.7 percent, what is the current bond price? (Show your work. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) 2. The Timberlake-Jackson Wardrobe Co. has 11.8 percent coupon bonds on the market with eight years left to maturity. The bonds make annual payments and have a par value of $1,000. If the bonds currently sell for $1,124.97, what is the YTM? (Show your work. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) 3. You purchase a bond with a coupon rate of 9.4 percent, a par value of $1,000, semiannual coupons, and a clean price of $820. If the next coupon payment is due in three months, what is the invoice price? (Show your work. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
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