One of the England's largest corporation, who own the hair salon, "British Hairways" just expanded operations into the United States. At present, the firm has a 30 year, $10,000 par value bond outstanding, with a coupon rate of 4.3% percent paid semiannually and 15 years to maturity. The yield to maturity on this bond is 5.2 percent.

 a)    What is the current value of the bond? 

b)   Once you have calculated the Present Value or the current price of the bond, what would be the Current Yield on this bond?

c)    Is it selling at a discount, par, or premium?

d)   What is difference between Yield to Maturity, Current Yield, and Coupon Rate?

 

Further Instructions:

Please include a time line, filling in or including all given and to be solved variables which are components of the bond, such as N, Semi-Annual Time Periods (as long as you indicate semi-annual is the frequency), I/Y, Coupon PMT, FV (Face Value at Maturity or M), PV?: