1. A tax-exempt bond was recently issued at an annual 10 percent coupon rate and matures 15 years from today. The par value of the bond is $1,000.

a.If required market rates are 10 percent, what is the market price of the bond?

b.If required market rates fall to 5 percent, what is the market price of the bond?

1. c.If required market rates rise to 14 percent, what is the market price of the bond? d.At what required market rate (10 percent, 5 percent, or 14 percent) does the above bond sell at a discount? At a premium?

2.Hanover County Hospital plans to issue a tax-exempt bond at an annual coupon rate of 6 percent with a maturity of 20 years. The par value of the bond is $1,000.

a.If required market rates are 6 percent, what is the value of the bond?

b.If required market rates fall to 3 percent, what is the value of the bond?

1. c.If required market rates fall to 10 percent, what is the value of the bond? d.At what required market rate (6 percent, 3 percent, or 10 percent) does the above bond sell at a discount? At a premium?

3.I want to know two ways that a health care provider can strengthen its credit rating. What are some of the ramifications of these options?