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I need help with these 3 finance questions ASAP Attempts: Keep the Highest: / 1 1. Problem 7.01 Click here to read the eBook: Bond

I need help with these 3 finance questions ASAP

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Attempts: Keep the Highest: / 1 1. Problem 7.01 Click here to read the eBook: Bond Valuation Problem Walk-Through BOND VALUATION Madsen Motors's bonds have 22 years remaining to maturity. Interest is paid annually; they have a $1,000 par value; the coupon interest rate is 11.5%; and the yield to maturity is 11%. What is the bond's current market price? Round your answer to the nearest cent. Grade it Now Save & Continue Continue without saving Back to Assignment Attempts: Keep the Highest: /2 2. Problem 7.02 Click here to read the eBook: Bond Yields Problem Walk-Through YIELD TO MATURITY AND FUTURE PRICE A bond has a $1,000 par value, 15 years to maturity, and a 8% annual coupon and sells for $1,080. a. What is its yield to maturity (YTM)? Round your answer to two decimal places. % b. Assume that the yield to maturity remains constant for the next 3 years. What will the price be 3 years from today? Do not round intermediate calculations. Round your answer to the nearest cent. $ Grade it Now Save & Continue Continue without saving Attempts: Keep the Highest: 12 3. Problem 7.08 Click here to read the eBook: Bond Yields YIELD TO CALL Ten years ago the Templeton Company issued 27-year bonds with an 10% annual coupon rate at their $1,000 par value. The bonds had an 9% call premium, with 5 years of call protection. Today Templeton called the bonds. a. Compute the realized rate of return for an investor who purchased the bonds when they were issued and held them until they were called. Round your answer to two decimal places. % b. Why the investor should or should not be happy that Templeton called them. I. Since the bonds have been called, interest rates must have risen sufficiently such that the YTC is greater than the YTM. If investors wish to reinvest their interest receipts, they can now do so at higher interest rates. II. Since the bonds have been called, interest rates must have risen sufficiently such that the YTC is greater than the YTM. If investors wish to reinvest their interest receipts, they must do so at lower interest rates. III. Since the bonds have been called, investors will receive a call premium and can declare a capital gain on their tax returns. IV. Since the bonds have been called, investors will no longer need to consider reinvestment rate risk. V. Since the bonds have been called, interest rates must have fallen sufficiently such that the YTC is less than the YTM. If investors wish to reinvest their interest receipts, they must do so at lower interest rates. -Select

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