4d

A few years ago, Spider Web, Inc. issued bonds with a 9.73 percent annual coupon rate, paid semiannually. The bonds have a par value of $1,000, a current price of $825, and will mature in 25 years. What would the annual yield to maturity be on the bond if you purchased the bond today?

Round the answer to two decimal places in percentage form. (Write the percentage sign in the "units" box)

You should use Excel or financial calculator.

4c

Flower Valley Company bonds have a 11.55 percent coupon rate. Interest is paid semiannually. The bonds have a par value of $1,000 and will mature 3 years from now. Compute the value of Flower Valley Company bonds if investors required rate of return is 11.64 percent.

Round the answer to two decimal places.

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