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a. Madsen Motors's bonds have 13 years remaining to maturity. Interest is paid annually; they have a $1,000 par value; the coupon interest rate is

a. Madsen Motors's bonds have 13 years remaining to maturity. Interest is paid annually; they have a $1,000 par value; the coupon interest rate is 6%; and the yield to maturity is 9%. What is the bond's current market price? Round your answer to the nearest cent.

$ ___

b. You are considering a 15-year, $1,000 par value bond. Its coupon rate is 8%, and interest is paid semiannually. If you require an "effective" annual interest rate (not a nominal rate) of 10.4850%, how much should you be willing to pay for the bond? Do not round intermediate calculations. Round your answer to the nearest cent.

$ ___

c. Potter Industries has a bond issue outstanding with an annual coupon of 6% and a 10-year maturity. The par value of the bond is $1,000. If the going annual interest rate is 9%, what is the value of the bond? Round your answer to the nearest cent. Do not round intermediate calculations. $ ___

d. Potter Industries has a bond issue outstanding with a 6% coupon rate with semiannual payments of $30, and a 10-year maturity. The par value of the bond is $1,000. If the going annual interest rate is 9%, what is the value of the bond? Round your answer to the nearest cent. Do not round intermediate calculations. $ ___

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