Bond Valuations

3. You are an auditor assigned to calculate the value of a group of bond holdings for a client. For each bond, the client has most of the information necessary to value the bond. For the parts it does not, you will have to figure it out yourself. There are multiple bonds held. The bonds have been an asset of the client for many years. Specifically: Bond A: The $1,000 par value bond matures in 8 years, with a coupon rate of 10%. With one payment per year you estimate the Yield to Maturity to be 5%. What is the Value of the Bond? The company owns 1,370 of these bonds and wants to sell them now. I Bond B: The bond matures in 16 years, with a coupon rate of 6%. With one payment per year you estimate the Yield to Maturity to be 7.5%. States lFocus The bond matures in 16 years, with a coupon rate of 6%. With one payment per year you estimate the Yield to Maturity to be 7.5%. You are told the value of the Bond is $1,045.71. The company owns 15,300 of these bonds and wants to sell them now. What is the par value of each Bond? I Finally: If your client sells all the Bonds based upon your valuations, what are the gross proceeds, cost and profit? What would your client owe in taxes? What are the net proceeds after the sale and taxes