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I would greatly appreciate if I received help on all these questions. There's 7 questions linked, please help me understand. Madsen Motors's bonds have 24

I would greatly appreciate if I received help on all these questions. There's 7 questions linked, please help me understand.

  1. Madsen Motors's bonds have 24 years remaining to maturity. Interest is paid annually; they have a $1,000 par value; the coupon interest rate is 10%; and the yield to maturity is 9%. What is the bond's current market price?
  2. A bond has a $1,000 par value, 12 years to maturity, and an 8% annual coupon and sells for $980.
    1. What is its yield to maturity (YTM) in percentage? Round your answer to two decimal places.
    2. Assume that the yield to maturity remains constant for the next 2 years. What will the price be 2 years from today? Round to nearest cent.
  3. Nesmith Corporation's outstanding bonds have a $1,000 par value, a 8% semiannual coupon, 18 years to maturity, and a 10% YTM. What is the bond's price?
  4. A firm's bonds have a maturity of 12 years with a $1,000 face value, have an 8% semiannual coupon, are callable in 6 years at $1,058.73, and currently sell at a price of $1,112.87.
    1. What is their nominal yield to maturity in percentage? Round your answer to two decimal places.
    2. What is their nominal yield to call? Do not round intermediate calculations. Round your answer to two decimal places.
    3. What return should investors expect to earn on these bonds? [multiple choice] A.) Investors would not expect the bonds to be called and to earn the YTM because the YTM is greater than the YTC. B.) Investors would not expect the bonds to be called and to earn the YTM because the YTM is less than the YTC. C.) Investors would expect the bonds to be called and to earn the YTC because the YTC is less than the YTM. D.) Investors would expect the bonds to be called and to earn the YTC because the YTM is less than the YTC. E.) Investors would expect the bonds to be called and to earn the YTC because the YTC is greater than the YTM.
  5. An investor has two bonds in his portfolio that have a face value of $1,000 and pay a 7% annual coupon. Bond L matures in 20 years, while Bond S matures in 1 year. Assume that only one more interest payment is to be made on Bond S at its maturity and that 20 more payments are to be made on Bond L.
    1. What will the value of the Bond L be if the going interest rate is 6%? Round your answer to the nearest cent.
    2. What will the value of the Bond S be if the going interest rate is 6%? Round your answer to the nearest cent.
    3. What will the value of the Bond L be if the going interest rate is 10%? Round your answer to the nearest cent.
    4. What will the value of the Bond S be if the going interest rate is 10%? Round your answer to the nearest cent.
    5. What will the value of the Bond L be if the going interest rate is 14%? Round your answer to the nearest cent.
    6. What will the value of the Bond S be if the going interest rate is 14%? Round your answer to the nearest cent.
    7. Why does the longer-term bonds price vary more than the price of the shorter-term bond when interest rates change? [multiple choice] A.) The change in price due to a change in the required rate of return increases as a bond's maturity decreases. B.) Long-term bonds have greater interest rate risk than do short-term bonds. C.) The change in price due to a change in the required rate of return decreases as a bond's maturity increases. D.) Long-term bonds have lower interest rate risk than do short-term bonds. E.) Long-term bonds have lower reinvestment rate risk than do short-term bonds.
  6. You are considering a 30-year, $1,000 par value bond. Its coupon rate is 11%, and interest is paid semiannually. If you require an "effective" annual interest rate (not a nominal rate) of 8.4005%, how much should you be willing to pay for the bond?
  7. An 8% semiannual coupon bond matures in 5 years. The bond has a face value of $1,000 and a current yield of 8.3229%.
    1. What is the bond's price? Do not round intermediate calculations. Round your answer to the nearest cent.
    2. What is the bond's YTM?

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