Please Answer ALL Seven Parts. The answer is given at the end. Please show all steps. PLEASE do not just answer the 1st one. Answer all w/ steps. Thank you!
1. UM bonds pay an annual coupon rate of 10%. They have 8 years before maturity. The maturity value is $1,000. The yield to maturity (market interest rate) on this class of bonds is 10%. Determine the price of these bonds. [\$1,000] 2. What is the value of a government bond that pays semiannual payments of $50 (coupon rate of 10% ) and has a maturity value of $1,000 if the annual market interest rate is 12% and the bond has 20 years until maturity? [\$ 849.53] 3 The Banzai Auto Company has experienced a market re-evaluation lately due to a number of lawsuits. The firm has a bond issue outstanding with 15 years to maturity and a coupon rate of 8% (paid semiannually). The required rate has now risen to 12.25%. At what price can these securities be purchased on the market? [\$ 711.37] 4. Liddy Corporation has bonds that pay an annual coupon rate of 8% and a maturity value of $1,000. The yield on comparable new bonds is 9.5%. The bonds have 7 years before they mature. Determine the value of one of Liddy's bonds. [\$925.76] 5. Hamblin Inc. has bonds that pay a coupon rate of 11% and a maturity value of $1,000. The yield in the market for this risk class of bonds is 10.5%. The bonds have 18 years before maturity. How much would one Hamblin bond be worth in the market? [\$1,039.73] 6. Adeline Corporation just issued a zero coupon bond with a life of 15 years. The face value of these bonds is $100,000 and the market rate is 9.6%. What would be the price of these bonds? {25,283.76] 7. You are the owner of 100 bonds issued by Georgia Corporation. These bonds have 8 years remaining to maturity, an annual coupon payment of $80, and a par value of $1,000. Unfortunately, Georgia Corp. is on the brink of bankruptcy, and the creditors, including yourself, have agreed to a postponement of the next 4 interest payments. The remaining interest payments will be made as scheduled. The postponed payments will accrue interest at an annual rate of 6% and will be paid as a lump sum at maturity 8 years hence. The required rate of return on these bonds, considering their substantial risk, is now 28%. What is the present value of each bond? [\$266.88]