Nesmith Corporation's outstanding bonds have a $$1,000$ par value, an $11\%$ semiannual coupon, $16$ years to maturity, and a $14\%$ YTM$.$ What is the bond's price?

Round your answer to the nearest cent.

$

The real risk$-$free rate is $2\mathrm{.}85\%.$ Inflation is expected to be $3\mathrm{.}85\%$ this year, $4\mathrm{.}15\%$ next year, and $2\mathrm{.}1\%$ thereafter. The maturity risk premium is estimated to

be $0\mathrm{.}05(t-1)\%,$ where $t=$ number of years to maturity. What is the yield on a $7-$year Treasury note? Do not round intermediate calculations. Round your

answer to two decimal places.

$\%$

Due to a recession, expected inflation this year is only $2\mathrm{.}75\%.$ However, the inflation rate in Year $2$ and thereafter is expected to be constant at some level

above $2\mathrm{.}75\%.$ Assume that the expectations theory holds and the real risk$-$free rate $(r^{**})$ is $2\mathrm{.}5\%.$ If the yield on $3-$year Treasury bonds equals the $1-$year yield

plus $0\mathrm{.}5\%,$ what inflation rate is expected after Year $1?$ Round your answer to two decimal places.

$\%$

Madsen Motors's bonds have $21$ 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 $12\%.$ What is the bond's current market price? Round your answer to the nearest cent.

A bond has a $$1,000$ par value, $15$ years to maturity, and an $8\%$ annual coupon and sells for $$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 five years. What will the price be $5$ years from today? Do not round intermediate

calculations. Round your answer to the nearest cent.