Bond Valuation HW Problems

1. (Bond Valuation Problem) A $1,000 par value bond with a coupon interest rate of 12.8 percentper year paid semiannually matures in 25 years. Draw a CF diagram corresponding to this information and then complete the table below by filling in the prices and YTMs that correspond to the given YTMs and prices respectively. Show all the work for part D both the PVA_t and PVcalculations. Then check your answer using your calculators TVM solver menu or function keys.

PRICE YTM

A. ______________ ___0%____

B. __$1,000______ __________

C. __$ 917.19_____ __________

D. ______________ ___16%____