Calculate the price of a bond originally issued six years ago that pays semiannual interest at the rate of 12 percent and matures in nine years at $1,000. The market currently requires an 8 percent return for a bond of this risk. (Use a Financial calculator to arrive at the answers. Do not round intermediate calculations. Round the final answer to 2 decimal places.) Price of a bond Ron Rhodes calls his broker to inquire about purchasing a bond of Golden Years Recreation Corporation. His broker quotes a price of $1,170. Ron is concerned that the bond might be overpriced based on the facts involved. The $1,000 par value bond pays 13 percent annual interest payable semiannually, and has 18 years remaining until maturity. The current yield to maturity on similar bonds is 11 percent. a. Compute the new price of the bond. (Use a Financial calculator to arrive at the answers. Do not round intermediate calculations. Round the final answer to 2 decimal places.) New price of the bond $ 1154.00 b. Do you think the bond is overpriced? Yes NO Bonds issued by the Coleman Manufacturing Company have a par value of $1,000, which is also the amount of principal to be paid at maturity. The bonds are currently selling for $850. They have 10 years to maturity. Annual interest is 9 percent ($90), paid semiannually. Compute the yield to maturity. (Use a Financial calculator to arrive at the answers. Do not round intermediate calculation. Round the final answer to 2 decimal places.) Yield to maturity 1.52 %