If interest rates in the financial markets increase after a bond is issued, what will happen to the bonds price and its yield to maturity? Lightening Electrics outstanding bond has a $1,000 maturity value and a 4.5 percent coupon rate of interest (paid semiannually). The bond, which was issued 5 years ago, matures in 10 years. If investors require a return equal to 6 percent to invest in similar bonds, what is the current market value of Lightenings bond? Grand Machinery has an outstanding bond that matures in 12 years. The bonds face value is $1,000 and its coupon rate of interest is 6.2 percent (paid semiannually). If investors require a return equal to 6.9 percent to invest in similar bonds, what should be the current market value of Grands outstanding bond? Fine Fishing Lures (FFL) has an outstanding bond with a $1,000 face value and a 9 percent coupon rate of interest (paid semiannually). The bond, which was issued 22 years ago, matures in eight years. If investors require a return equal to 4 percent to invest in similar bonds, what is the market value of FFLs bond? Filkins Farm Equipments five-year zero-coupon bond is currently selling for $621. The bonds maturity value is $1,000. What is the bonds yield to maturity (YTM)? 17. Channel Marker Ships (CMS) has a 14-year callable bond with a $1,000 face value and a call value, or redemption price, equal to $1,070. The coupon rate of interest is 7 percent, which is paid semiannually. Currently, the bond is selling for $886. (a) What is the bonds yield to maturity (YTM)? (b) If the bond can be called in six years, what is its yield to call (YTC)?