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Bonds ( 25 points: 5 items 5 points) Read and analyze the given scenarios and provide what is asked. Show your complete solutions. Bond Valuation

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Bonds ( 25 points: 5 items 5 points) Read and analyze the given scenarios and provide what is asked. Show your complete solutions. Bond Valuation For items 1-3: The Peninsula Corporation issued a new series of bonds on January 1, 1992. The bonds were sold at par ( P1,000), had a 12% coupon, and mature in 30 years, on December 31, 2021. Coupon payments are made semiannually (on June 30 and December 31). 1. What was the YTM on January 1,1992 ? 2. What was the price of the bonds on January 1,1997 , five (5) years later, if interest rates had fallen to 10% ? 3. Find the current yield, capital gains yield, and total return on January 1, 1997, given the price as determined in part 2

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