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5_Amherst Corporation currently has outstanding bonds that will mature in 13 years. The bonds carry a 4.5 percent coupon rate, payable semi-annually. The market's risk

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5_Amherst Corporation currently has outstanding bonds that will mature in 13 years. The bonds carry a 4.5 percent coupon rate, payable semi-annually. The market's risk adjusted required rate of return on similar bonds is now 3.0 percent. a. What is the market price for an Amherst bond? b. If you hold this bond for 10 years and the market required rate of return remains constant, at what price can you expect to sell the bond? 6. Salem Co. has 5.00 percent semi-annual coupon bonds that will mature in 11 years. The market value of the bonds is $1,120. What is the Yield to Maturity on these bonds

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