How to answer question 8 on financial calculator

Jersey | Nic New tab 12 Newtab b guanaco animal+ 32632/cfi/1751/4/4@0.00:0.00 Investment 8. Interpreting Bond Yields (LO2, CFA3) Suppose you buy a 9 percent coupon, 15-year bond today when it's first issued. If interest rates suddenly rise to 15 percent, what happens to the value of your bond? Why? 9. Bond Prices versus Yields (LOI, CFA3) (a) What is the relationship between the price of a bond and its YTM? (b) Explain why some bonds sell at a premium to par value, and other bonds sell at a discount. What do you know abour the relationship between the coupon rate and the YTM for premium bonds? What about discount bonds? For bonds selling at par value? (c) What is the relationship between the current yield and YTM for premium bonds? For discount bonds? For bonds selling at par value? 10. Yield to Call (LO1, CFAS) For callable bonds, the financial press generally reports either the yield to maturity or the yield to call. Often yield to call is reported for premium bonds, and yield to maturity is reported for discount bonds. What is the reasoning behind this convention? Questions and Problems 1. Bond Prices (1LO1, CFAS) Aloha Inc. has 7 percent coupon bonds on the market that have 2. Bond Yields LOI, CFA2) Rolling Company bonds have a coupon rate of 4 percent, 14 years 3. Bond Prices (L.O1, CFA3) A bond has a coupon rate of 8.2 percent and 9 years until maturity 4 Bond Prices (L.OL,CFA3) tions 12 years left to maturity. If the YTM on these bonds is 9.1 percent, what is the current bond price? to maturity, and a current price of $1,086. What is the YTM? The current yield? If the yield to maturity is 7.4 percent, what is the price of the bond? A bond with 25 years unil maturity has a coupon rate of 7,2 pencent HEWLETTPACKARD