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4. Pear, Inc. (Nasdaq: PEA) has an outstanding bond with a $1,000 face value and 10 percent coupon rate (paid semiannually). The bond, which was

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4. Pear, Inc. (Nasdaq: PEA) has an outstanding bond with a $1,000 face value and 10 percent coupon rate (paid semiannually). The bond, which was issued 5 years ago, matures in 20 years. If investors require a return equal to 8 percent to invest in this bond, what is the value (price) of the bond? 5. Great Lake Pizzeria issued 20-year bonds five year ago at a coupon rate of 8.80 percent. If the YTM on these bonds is 7.0 percent, what is the current bond price? Assume par value is $1,000 and coupons are paid semiannually. 6. What is the price of a zero coupon bond with a $1,000 face value and 15 year maturity when the market interest rate is 5% ? Assume semiannual coupon payments on a bond with similar investment characteristics

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