#5 please

Homework 3 AAA Corporation recently issues noncallable bonds that mature in 15 years. They have a par value of$1,000 and annual coupon rate of 5.7%. Ifthe current market interest rate is 7.0%, at what price should the bonds sell? Hint: find PV Sakha Inc's bonds currently sell for $1,180 and have a par value of $1,000. They pay $105 annual coupon and have a 15-year maturity, but they can be called in 5 years at $1,100. What is their yield to call (YTC)? Macro's bonds sell for S1,050. They have a 6-year maturity, an annual coupon of $75, and a par value of $1,000. What is their market interest rate? Mark Corporation's bonds have a 15-year maturity, a 7.25% coupon interest, and a par value of $1,000. The going interest rate is 6.20%. 1. 2. 3. 4. a. What is the bond's price? b. If the bond is paying semiannual coupon interest, what is the bond price? c. Ifthe bond is callable at the end ofvear 5 at $1,050 with semiannual coupon interest. what is the bond's yield to call (YTC)? Hint: the PV of the bond is from question (b). An investor purchased bond A and bond C. Each bond matures in 4 years, has face value of $1,000, and has a yield to maturity of 7.2%. Bond A pays an 11.5% annual coupon, while Bond C is a zero-coupon bond. 5. a. Find the current market price for bond A and C. b. Assuming that the yield to maturity ofeach bond remains at 7.2% over the next 4 years. Calculate the price of the bonds at each of the following maturity: Years to Maturity Price of Bond A Price of Bond C 4 Find the expected current yield and the capital gains yield of the following table. Assume that the market rate is 10% and coupon payment is $70. Refer to the Excel Spreadsheet and PPTs. 6. Price Expected current yield Capital Gains yield Expected total return $886.28 $904.90 $925.39 $947.93 $972.73 0 $1,000.00