Part A

Bond X is noncallable and has 20 years to maturity, a 8% annual coupon, and a $1,000 par value. Your required return on Bond X is 11%; and if you buy it, you plan to hold it for 5 years. You (and the market) have expectations that in 5, years the yield to maturity on a 15-year bond with similar risk will be 8%. How much should you be willing to pay for Bond X today? (Hint: You will need to know how much the bond will be worth at the end of 5 years.) Round your answer to the nearest cent.

Part B

Last year, Joan purchased a $1,000 face value corporate bond with an 11% annual coupon rate and a 30-year maturity. At the time of the purchase, it had an expected yield to maturity of 10.87%. If Joan sold the bond today for $1,058.69, what rate of return would she have earned for the past year? Round your answer to two decimal places.

Part C

Nungesser Corporation's outstanding bonds have a $1,000 par value, a 9% semiannual coupon, 14 years to maturity, and an 9.5% YTM. What is the bond's price? Round your answer to the nearest cent.