my question is Q 32, components of bond returns , thank you ao much !

PART 3 Valuation of Future Cash Flows b. In 20 years, what will your company's repayment be if you issue the c bonds? What if you issue the zeroes? c. Based on your answers in (a) and (b), why would you ever want to issue the zeroes? To answer, calculate the firm's aftertax cash outflows for the first under the two different scenarios. Assume the IRS amortization rules apply for the zero coupon bonds. 30. Finding the Maturity [LO2] You've just found a 10 percent coupon bond on the market that sells for par value. What is the maturity on this bond? 31. Real Cash Flows (LO4] You want to have $2.6 million in real dollars in an account when you retire in 40 years. The nominal return on your investment is 10.8 percent and the inflation rate is 3.7 percent. What real amount must you deposit each year to achieve your goal? 32. Components of Bond Returns [LO2] Bond P is a premium bond with a coupon rate of 10 percent. Bond D has a coupon rate of 4 percent and is currently selling at a discount. Both bonds make annual payments, have a YTM of 7 percent, and have 10 years to maturity. What is the current yield for bond P? For bond D? If interest rates remain unchanged, what is the expected capital gains yield over the next year for bond P? For bond D? Explain your answers and the interrelationships among the various types of yields. 33. Holding Period Yield [LO2) 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 rate of 7 percent for $1,060. The bond has 17 years to maturity. What rate of return do you expect to earn on your investment? Assume a par value of $1,000. b. 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? What is the HPY on your investment? Compare this yield to the YTM when you first bought the bond. Why are they different? 34. Valuing Bonds [LO2) Jallouk Corporation has two different bonds currently out- standing. Bond M has a face value of $20,000 and matures in 20 years. The bond makes no payments for the first six years, then pays $1,100 every six months over the subsequent eight years, and finally pays $1,400 every six months over the last six years. Bond N also has a face value of $20,000 and a maturity of 20 years; it makes no coupon payments over the life of the bond. If the required return on both these bonds is 5.6 percent compounded semiannually, what is the current price of bond M? Of bond N? 35. Yaluing the Call Feature (LO2] At one point, certain U.S. Treasury bonds were oy 15