One of the Englands 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.

1. What is the current value of the bond?
2. Once you have calculated the Present Value or the current price of the bond, what would be the Current Yield on this bond?
3. Is it selling at a discount, par, or premium?
4. What is the difference between the concepts of Yield to Maturity, Current Yield, and Coupon Rate? Please compare the three rate

1. (20/100 points) Present Value of Bond 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 the difference between the concepts of Yield to Maturity, Current Yield, and Coupon Rate? Please compare the three rate Further Instructions: Please include a time line. Filling in or including all given information and relevant variables, 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), (where the Present Value equals the current bond price) PV is variable to be solved for, so PV? Below is an example of a timeline for a bond, yet similar to the other problems, feel free to use your own or work with this one, as it is in editable format in word. Thank you. N=0 1 2 3 4 5 6 .... 28 29 + tha 30 semi-annual periods I/Y=YTM%/2 FV=$10,0000 PMT + $10,000 (at maturity) PV=? PMT PMT PMT PMT PMT PMT PMT PMT PVA(PMTs) PV(M) + Bond Price PV of [Annuity of Equal Semi-Annual PMTs] + [Face Value] Discount and sum both PVs of all equal semi-annual payments plus face value at maturity If you solve by calculator - please indicate you have done so, while still including a timeline and general formula (If you already have solved by both calculator and formula, you will receive additional credit) # pts. Component(no. 1) Timeline General Formula Calculations Steps Answer Total Points (of 20 pts)