14. A bond that matures in 12 years has a par value of $1,000 and an annual coupon of 12%; the market interest rate is 8%. What is its price? Years to maturity Coupon rate Annual payment Par value Going rate, ra 12 12% US$120 US$1,000 8% Value of bond = 15. Halley Enterprises' bonds currently sell for $950. They have a 7-year maturity, an annual coupon of $85, and a par value of $1,000. What is their yield to maturity? Hint: Find using the RATE function Years to maturity Annual payment US$85.00 Current price US$950.00 Par value = FV S$1,000.00 YTM = Required rate, rd: 16. Last year a firm issued 22-year, 9% annual coupon bonds at a par value of $1,000. Suppose that one year later the going rate drops to 6%. What is the new price of the bonds assuming that they now have 19 years to maturity? Years to maturity Coupon rate Annual payment Par value Required rate, ra 21 9% US$90 US$1,000 6% Value of bond =