Question
1-A company has some bonds that will mature in 20 years. They have a par value of $1,000 and coupon rate of 9.5% with semi-annual
1-A company has some bonds that will mature in 20 years. They have a par value of $1,000 and coupon rate of 9.5% with semi-annual payments. If the current market interest rate is 11.0%, at what price should the bonds sell? What is this bonds current yield?
2-A companys non-callable bonds currently sell for $987.50. They have a 16-year maturity, semi-annual coupon of $38.75, and a par value of $1,000. What is their yield to maturity and their coupon rate?
3-A companys bonds currently sell for $1,125 and have a par value of $1,000. They pay semiannual coupon of $45, and have a 12-year maturity, but they can be called in 4 years at $1,250. What is their yield to maturity YTM and YTC?
please show all work and I will upvote. Thanks
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