Microsoft Word - Sp15_Final_Exam.doc

Please help me to calculate these problems. Please provide and explanation ( formula) that I can follow.

Try to make it basic that I can understand.

Thank you

3. Bond Valuation

1. The Dodson Company bond currently sells for $955, has a 12% coupon rate, and a $1,000 par value, pays interest annually, and has 15 years to maturity. Calculate its yield to maturity (YTM).
2. Liebert Electric Corporation bond pays interest semi annually, has a 14% coupon rate, and a $1,000 par value, has a 10% required annual return, and has 15 years to maturity. Calculate its current price.
3. Paul Jordan takes out a $20,000 loan to buy a car and will make monthly payments for 36 months to pay off the loan. The interest rate is 6% annually with monthly compounding. What is his monthly payment?