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a) Assume that you are considering the purchase of a 20-year, noncallable bond with an annual coupon rate of 7.5%. The bond has a face

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a) Assume that you are considering the purchase of a 20-year, noncallable bond with an annual coupon rate of 7.5%. The bond has a face value of $1,000, and it makes semi-annual interest payments. If you require an 9.4% yield to maturity on this investment. (5 marks) what is the maximum price you should be willing to pay for the bond? b) Harding Enterprises bonds currently sell for $1.050. They have a 7-year maturity, an annual coupon of $50, and a par value of (5 marks) $1,000. What is their current yield? c Endoderm Corporation's bonds make an annual coupon interest payment of 7.75%. The bonds have a par value of $1,000, a current price of $1,150 and mature in 15 years. What is the yield to maturity on these bonds? (5 marks) d) Optimum Company's bonds mature in 20 years, have a par value of $1,000, and make an annual coupon interest payment of $45. The market requires an interest rate of 6.2% on these bonds. What is the bond's price

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