10 in Mini-Case et's r is retired and living on his Social Security ben- our rathe interest he gets from savings. However, the interest ves has dwindled to only 2 percent a year on 0 in savings as interest rates in the economy have bis $2 You have been thinking about recommending that he droped. sone corporate bonds with at least part of his savings 2. The bond pa- amounts: income he Young Entertai in pur of increasing his interest income. as a way i s a Snecifically, you have identified three corporate bond is- What is way for your grandfather to consider. The first is an issue from sue Voung Corporation that pays annual interest based on a 7.8 years before it matures. The sec- ped bond was issued by Thomas Resorts, and it pays 7.5 percent ennual interest and has 17 years until it matures. The final bond was sold by Entertainment, Inc., and it pays an annual Young percent coupon rate and has 10 3. Given your es the pric atracti 4. Howw coupon interest payment based on a rate of 7.975 percent and requird crease has only 4 years until it matures. All three bond issues have a $1.000 par value. After looking at the bonds' default risks and points credit ratings, you have very different yields to maturity in mind chang 5. What Before recommending any of these bond issues to your com grandfather, you perform a number of analyses. Specifically, 6. Whi gran for the three bond issues, as noted below. you want to address each of the following issues: 1. Estimate an appropriate market's required yield to maturity for each of the bond issues using the cred in Table 9.4. Thomas Entertainment Young Corp. Reorts Inc Coupon interest rate Years to maturity 7.5% 17 7.8% 7.975% 10 rent market price $1,030 $973 $1,035 Par value Bond rating $1,000 $1,000 $1,000 10 in Mini-Case et's r is retired and living on his Social Security ben- our rathe interest he gets from savings. However, the interest ves has dwindled to only 2 percent a year on 0 in savings as interest rates in the economy have bis $2 You have been thinking about recommending that he droped. sone corporate bonds with at least part of his savings 2. The bond pa- amounts: income he Young Entertai in pur of increasing his interest income. as a way i s a Snecifically, you have identified three corporate bond is- What is way for your grandfather to consider. The first is an issue from sue Voung Corporation that pays annual interest based on a 7.8 years before it matures. The sec- ped bond was issued by Thomas Resorts, and it pays 7.5 percent ennual interest and has 17 years until it matures. The final bond was sold by Entertainment, Inc., and it pays an annual Young percent coupon rate and has 10 3. Given your es the pric atracti 4. Howw coupon interest payment based on a rate of 7.975 percent and requird crease has only 4 years until it matures. All three bond issues have a $1.000 par value. After looking at the bonds' default risks and points credit ratings, you have very different yields to maturity in mind chang 5. What Before recommending any of these bond issues to your com grandfather, you perform a number of analyses. Specifically, 6. Whi gran for the three bond issues, as noted below. you want to address each of the following issues: 1. Estimate an appropriate market's required yield to maturity for each of the bond issues using the cred in Table 9.4. Thomas Entertainment Young Corp. Reorts Inc Coupon interest rate Years to maturity 7.5% 17 7.8% 7.975% 10 rent market price $1,030 $973 $1,035 Par value Bond rating $1,000 $1,000 $1,000