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Please show all formulas and work! Thanks 1. Facebook issues 10 -year bonds with a par value of $1,000 and a coupon rate of 8%.
Please show all formulas and work! Thanks 1. Facebook issues 10 -year bonds with a par value of $1,000 and a coupon rate of 8%. 1) Suppose that the coupon is paid annually and the yield to maturity on this bond is 10%. Figure out the bond price. (30points) 2) Suppose that the coupon is paid semiannually and the yield to maturity is 9%. Figure out the bond price. (30points) 3) Figure out the yield to maturity if the bond price is $1,020 for the 10-year bond with a par value of $1,000 and a coupon rate of 8% paid annually. (30points) 4) Figure out the yield to maturity if the bond price is $975 for the 10-year bond with a par value of $1,000 and a coupon rate of 10% paid semiannually. (30points)
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