I am really struggling in this chapter. Can someone show me how to work these problems out. It is all I have left for this section.

1. Microhard has issued a bond with the following characteristics: Par: $1,000 Time to maturity: 19 years Coupon rate: 7 percent Semiannual payments Calculate the price of this bond if the YTM is (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.): a. 7 percent Price of the Bond $ $ b. 10 percent $ c. 4 percent 2. Rhiannon Corporation has bonds on the market with 22.5 years to maturity, a YTM of 6.9 percent, and a current price of $1,057. The bonds make semiannual payments. What must be the coupon rate on these bonds? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Coupon rate % 3. Miller Corporation has a premium bond making semiannual payments. The bond pays a coupon of 8 percent, has a YTM of 6 percent, and has 14 years to maturity. The Modigliani Company has a discount bond making semiannual payments. This bond pays a coupon of 6 percent, has a YTM of 8 percent, and also has 14 years to maturity. What is the price of each bond today? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Price of Miller Corporation bond $ $ Price of Modigliani Company bond If interest rates remain unchanged, what do you expect the prices of these bonds to be 1 year from now? In 5 years? In 10 years? In 12 years? In 14 years? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Price of bond 1 year 5 years 10 years 12 years 14 years Miller Corporation Bond $ Modigliani Company Bond $ 118.76 $ $ $ $ $ $ $ $ 4. Laurel, Inc., and Hardy Corp. both have 10 percent coupon bonds outstanding, with semiannual interest payments, and both are priced at par value. The Laurel, Inc., bond has three years to maturity, whereas the Hardy Corp. bond has 18 years to maturity. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of these bonds? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Percentage change in price of Laurel Percentage change in price of Hardy % % If interest rates were to suddenly fall by 2 percent instead, what would the percentage change in the price of these bonds be then? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Percentage change in price of Laurel Percentage change in price of Hardy % % 5. The Faulk Corp. has a 6 percent coupon bond outstanding. The Gonas Company has a 12 percent bond outstanding. Both bonds have 15 years to maturity, make semiannual payments, and have a YTM of 9 percent. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of these bonds? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) % Percentage change in price of Faulk % Percentage change in price of Gonas What if interest rates suddenly fall by 2 percent instead? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) % Percentage change in price of Faulk % Percentage change in price of Gonas 6. Hacker Software has 12 percent coupon bonds on the market with 16 years to maturity. The bonds make semiannual payments and currently sell for 108.8 percent of par. What is the current yield on the bonds? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) % Current yield What is the YTM? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) YTM % What is the effective annual yield? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Effective annual yield % 7. The YTM on a bond is the interest rate you earn on your investment if interest rates don't change. If you actually sell the bond before it matures, your realized return is known as the holding period yield (HPY). a. Suppose that today you buy a bond with an annual coupon of 8 percent for $1,170. The bond has 16 years to maturity. What rate of return do you expect to earn on your investment? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) % Expected rate of return b-1.Two years from now, the YTM on your bond has declined by 1 percent, and you decide to sell. What price will your bond sell for? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) Bond price $ b-2.What is the HPY on your investment? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) HPY %