(Bond valuation) Xerox issued bonds that pay $30.00 in interest each year and will mature in 6 years. You are thinking about purchasing the bonds. You have decided that you would need to receive a return of 7 percent on your investment. What is the value of the bond to you, first assuming that the interest is paid annually and then semiannually? a. If the interest is paid semiannually, the value of the bond is $ (Round to the nearest cent.) (Bond valuation-zero coupon) The Latham Corporation is planning on issuing bonds that pay no interest but can be converted into $1,000 at maturity, 9 years from their purchase. To price these bonds competitively with other bonds of equal risk, it is determined that they should yield 9 percent, compounded annually. At what price should the Latham Corporation sell these bonds? ... The price of the Latham Corporation bonds should be $ (Round to the nearest cent.) (Expected rate of return and current yield) Time Warner has bonds that are selling for $1,128. The coupon interest rate on the bonds is 8.85 percent and they mature in 29 years. What is the yield to maturity on the bonds? What is the current yield? a. The yield to maturity on the bond is %. (Round to two decimal places.) (Bondholders' expected rate of return) You purchased a bond for $900. The bond has a coupon rate of 5 percent, which is paid semiannually. It matures in 5 years and has a par value of $1,000. What is your expected rate of return? ... Your expected rate of return is %. (Round to two decimal places.)