Please answer all of the questions on the attachment correctly. If some aren't correct, I will ask that you either don't try again or that you are sure you know the answer. I look forward to learning from you. Thank you!

Problem 7-1 Bond valuation Callaghan Motors' bonds have 11 years remaining to maturity. Interest is paid annually, they have a $1,000 par value, the coupon interest rate is 7%, and the yield to maturity is 12%. What is the bond's current market price? Round your answer to the nearest cent. $ Problem 7-2 Yield to maturity and future price A bond has a $1,000 par value, 7 years to maturity, and a 9% annual coupon and sells for a. $1,095. 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 2 years. What will the price be 2 years from today? Round your answer to the nearest cent. $ Problem 7-4 Yield to maturity A firm's bonds have a maturity of 12 years with a $1,000 face value, have an 8% semiannual a. coupon, are callable in 6 years at $1,066, and currently sell at a price of $1,123.66. What is their nominal yield to maturity? Round your answer to two decimal places. % b. What is their nominal yield to call? Round your answer to two decimal places. % c. I. II. III. What return should investors expect to earn on these bonds? Investors would expect the bonds to be called and to earn the YTC because the YTM is less than the YTC. Investors would expect the bonds to be called and to earn the YTC because the YTC is greater than the YTM. Investors would not expect the bonds to be called and to earn the YTM because the YTM is greater than the YTC. IV. Investors would not expect the bonds to be called and to earn the YTM because the YTM is less than the YTC. Investors would expect the bonds to be called and to earn the YTC because the YTC is less than the YTM. V. Problem 7-5 Bond valuation An investor has two bonds in his portfolio that both have a face value of $1,000 and pay a 10% annual coupon. Bond L matures in 18 years, while Bond S matures in 1 year. Assume that only one more interest payment is to be made on Bond S at its maturity and that a. 18 more payments are to be made on Bond L. What will the value of the Bond L be if the going interest rate is 5%? Round your answer to the nearest cent. $ What will the value of the Bond S be if the going interest rate is 5%? Round your answer to the nearest cent. $ What will the value of the Bond L be if the going interest rate is 9%? Round your answer to the nearest cent. $ What will the value of the Bond S be if the going interest rate is 9%? Round your answer to the nearest cent. $ What will the value of the Bond L be if the going interest rate is 13%? Round your answer to the nearest cent. $ What will the value of the Bond S be if the going interest rate is 13%? Round your answer to the nearest cent. $ b. I. II. III. Why does the longer-term bond's price vary more than the price of the shorter-term bond when interest rates change? Long-term bonds have greater interest rate risk then do short-term bonds. The change in price due to a change in the required rate of return decreases as a bond's maturity increases. Long-term bonds have lower interest rate risk then do short-term bonds. IV. V. Long-term bonds have lower reinvestment rate risk then do short-term bonds. The change in price due to a change in the required rate of return increases as a bond's maturity decreases