4. (A). In 2011 Milhous Co 12s19 bonds listed as 97, and they pay coupon semiannually. If your required rate of return is 13%, how much should you pay for one of these bonds? Would you buy them at the market price? Assume the face of a Bond is OMR 100.

(B).

Albert Company, with current yield 12%, will mature after 10 years. The coupon rate of theses is 10%. Calculate their market price and the yield to maturity