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Pharoah, Inc., has outstanding bonds that will mature in six years and pay an 8 percent coupon semiannually. If you paid $1,041.55 today and your

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Pharoah, Inc., has outstanding bonds that will mature in six years and pay an 8 percent coupon semiannually. If you paid $1,041.55 today and your required rate of return was 6.5 percent. (Round intermediate calculations to 5 decimal places, e.g. 1.25145 and final answer to 2 decimal places, eg. 15.25.) Excel Template (Note: This template includes the problem statement as it appears in your textbook. The problem assigned to you here may have different values. When using this template, copy the problem statement from this screen for easy reference to the values you've been given here, and be sure to update any values that may have been pre-entered in the template based on the textbook version of the problem.) How much should you have paid for the bond? Worth of the bond $ Did you pay the right price for the bond? The Sheridan Department of Transportation has issued 25-year bonds that make semiannual coupon payments at a rate of 10.125 percent. The current market rate for similar securities is 11.5 percent. Assume that the face value of the bond is $1,000. Excel Template (Note: This template includes the problem statement as it appears in your textbook. The problem assigned to you here may have different values. When using this template, copy the problem statement from this screen for easy reference to the values you've been given here, and be sure to update any values that may have been pre-entered in the template based on the textbook version of the problem.) (a) What is the current market value of one of these bonds? (Round answer to 2 decimal places, eg. 15.25.) Current market value $ Pharoah, Inc., has bonds outstanding that will mature in 8 years. The bonds have a face value of $1,000. These bonds pay interest semiannually and have a coupon rate of 4.6 percent. If the bonds are currently selling at $874.92, what is the yield to maturity that an investor who buys them today can expect to earn? (Round answer to 3 decimal place, eg. 5.275%) Yield to maturity % What is the effective annual yield? (Round answer to 3 decimal places, eg. 5.275%.) Effective annual yield %

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