(2) (Bond valuation) Calculate the value of a bond that matures in 12 years and has a

$ 1000 par value. The annual coupon interest rate is 13 percent and the market's required yield to maturity on a comparable-risk bond is 14 percent. The value of the bond is

$ (Round to the nearest cent.)

(3) (Bond valuation) A bond that matures in 20 years has a $1000 par value. The annual coupon interest rate is 12 percent and the market's required yield to maturity on a comparable-risk bond is 14 percent. What would be the value of this bond if it paid interest annually? What would be the value of this bond if it paid interest semi-annually?

a. The value of this bond if it paid interest annually would be

$ (Round to the nearest cent.)

(4) (Bond valuation) Pybus, Inc. is considering issuing bonds that will mature in 25years with an annual coupon rate of 7 percent. Their par value will be $1000, and the interest will be paid semi-annually. Pybus is hoping to get a AA rating on its bonds and, if it does, the yield to maturity on similar AA bonds is 11.5percent. However, Pybus is not sure whether the new bonds will receive a AA rating. If they receive an A rating, the yield to maturity on similar A bonds is 12.5 percent. What will be the price of these bonds if they receive either an A or a AA rating?

a. The price of the Pybus bonds if they receive a AA rating will be

$ (Round to the nearest cent.)