1. Silver Dart Lodge Inc. sold an issue of 25-year, $1,000 par value bonds to the public. The bonds has a 7.25% coupon rate and pays interest annually. The current market rate of interest on the Silver Dart Inc. bonds is 6.5%. What is the current market price of the bonds? Round the answer to two decimal places. a) $1,192.15 b)$1,000 c)$871.58 d) $1,091.48 2. Fantastic Floors Inc. just issued zero-coupon bonds with a par value of $1,000. The bond has a maturity of 15 years and a yield to maturity of 7.45%, compounded semi-annually. What is the current price of the bond? Round the answer to two decimal places. a) $333.81 b)$1,095.91 c)$555.92 d)$896.01 3. 12 years ago Marco Chip Inc. issued 30-year to maturity zero-coupon bonds with a par value of $1,000. The bond has yield to maturity of 9.3% compounded semi-annually. What is the current price of the bond? Round the answer to two decimal places. a) $194.71 b)$1,134.85 c)$934.25 d)$1463.80 4. Tom is considering the purchase of Red Lobster Inc. bonds that were issued 4 years ago. When the bonds were originally sold, they had a 25-year maturity and a 6.54% coupon interest rate paid annually. The bond is currently selling for $1,178. What is the yield to maturity on the bonds if you purchased the bond today? Round the answer to two decimal places in percentage form a)12.94% b)5.14% c)8.41% d)15.22% 5. Morning Star Inc. sold an issue of 30-year, $1,000 par value bonds to the public. The bonds has a 14.6% coupon rate and pays interest annually. It is now 7 years later. The current market rate of interest of the Morning Star INc. bonds is 11.7%. What is the current market price (intrinsic value) of the bonds? Round the answer to two decimal places. a) 828.65 b)820.431 c) 1,156.21 d) $1,228.41 6. Alex plans to purchase a callable bond of Horizon Inc. The bond is 20-year to maturity, carry 13.5% annual coupon, paid semi-annually, and have a$1,000 par value. The bond is selling now for $1,287 each. The bond can be called back in 7 years at a call price $1,067.5. What is the yield to call for these bonds? Round the answer to two decimal places in percentage form. a)18.93% b)12.27% c)11.01% d)8.67%