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7. (1pt) Merton Enterprises has $1000 par value bonds on the market making annual payments, with 10 years to maturity, and currently selling for $1100.
7. (1pt) Merton Enterprises has $1000 par value bonds on the market making annual payments, with 10 years to maturity, and currently selling for $1100. The yield to maturity is 7% (compounded annually). What must the annual coupon be on Merton's bonds? 8. (1 pt) App Store Co. issued $1000 par value, 20-year bonds four years ago with a semiannual coupon of $20. If the YTM on these bonds is 5% (compounded semiannually), what is the current bond price
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