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Please help with each part: ***ONLY QUESTION 9**** PARTA (1) What is the value of a 10-year, $1,000 par value bond with a 10% annual

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***ONLY QUESTION 9****
PARTA (1) What is the value of a 10-year, $1,000 par value bond with a 10% annual coupon if its required return is 10%? N CPN & YTM Par Value PRICE PART B (2) What is the value of a 13% coupon bond that is otherwise identical to the bond described in part d? Would we now have a discount or a premium bond? N CPN % YTM Par Value PRICE Discount hond (3) What is the value of a 7% coupon bond with these characteristics? Would we now have a discount or a premium bond? N 3 CPN 1 YTM Par Value PRICE Discount bond PART C (5) What is the yield to maturity on a 10-year, 9% annual coupon, $1,000 par value bond that sells for $887.00? That sells for $1,134.20? N PMT FV PRICE N PMT FV PRICE YTM YTM PARTD (6) How does the equation for valuing a bond change if semiannual payments are made? Find the value of a 10-year, semiannual payment, 10% coupon bond if nominalra = 13%. Periods per year = IN WYR CPN % 2 FV 3 4 PRICE -5 PARTE (7) Suppose for $1,000 you could buy a 10%, 10-year, annual payment bond or a 10%, 10-year, semiannual payment bond. They are equally risky. Which would you prefer? If $1,000 is the proper price for the semiannual bond, what is the equilibrium price for the annual payment bond? 3 3 9 Nominal rate 10% 0 # of compoundings 2 1 2 EAR 3 (8) Since the proper price of the semiannual bond is $1,000 and both bonds are equally risky, the EAR 4 should be used to find the value of the annual payment bond. 5 6 N 7 I/YR 8 CPN 1 59 FV 0 21 PRICE PARTE 9) Suppose a 10-year, 10%, semiannual coupon bond with a par value of $1,000 is currently selling for $1,135.90, producing a nominal yield to maturity of 8%. However, it can be called after 4 years for $1,050. (1) What is the bond's nominal yield to call (YTC)? (2) If you bought this bond, would you be more likely to earn the YTM or the YTC? Years to maturity Coupon rate Price Nom YTM Years to call Call price Periods per year N PV PMT FV Periodic YTC Nominal YTC Effective YTC Held to maturity or called

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