2. What annual yield would be necessary for an investor to make a 10 percent profit on the price of the bond in question 1 in one year? Calculate the new price first.

N I PV PMT FV

Question 1.

What is the price of a bond that has a twelve year maturity, a coupon rate of 3.45 percent, a par value of $1,000, and pays interest semiannually? The current market yield is 4.56 percent. If the company wants to raise $100,000,000, how many bonds must be issued?

N I PV PMT FV