A) Hermes is planning the purchase of a 20-year bond that pays 25 interest every 3 months. The face value of the bond is 1,000. She plans to hold the bond for 10 years and sell it. She requires a 10 percent annual return but believes that the market will give only an 8 percent return when she sells the bond 10 years from now. What is Hermes' current yield?

B) Dior bought a bond when it was issued by Chimera Ant Corporation 10 years ago. The bond has a 1,000 face value and a coupon rate equal to 10 percent, matures in 5 years. Interest is paid every 3 months; the next interest payment is scheduled for 3 months from today. Assuming the yield on similar risk investments is 11 percent, calculate the current market value (price) of the bond.

939.8

961.93

323.12

920.37

C) "Chanel Hanz plans to issue bonds with a par value of 1,000 and 10 years to maturity. These bonds will pay 55 interest every 6 months. Current market conditions are such that the bonds will be sold at net 940.79. What is the yield to maturity (YTM) of the issue?