Question
Please type it out step by step on the calculator! No written notes 1 A: Sea Masters Co. issued $1000 par value bonds with a
Please type it out step by step on the calculator! No written notes
1 A: Sea Masters Co. issued $1000 par value bonds with a 8 percent coupon. The bond pays interest semi-annually and has 6 years remaining to its maturity date. If the market demands 6.8 percent required rate on the bond, what is the price of the bond? Round it two decimial places, and do not include the $ sign, e.g., 935.67.
1 B: Consider a 25-year bond with 12 percent annual coupon payments. The market rate (YTM) is 6.2 percent for this bond. The current yield of the bond is _______ percent. Answer it in percentage without the % sign, and round it to two decimal place, e.g., 5.69.
1C: Blue Jazz, Inc., has 9 percent coupon bonds on the market that have 21 years left to maturity. The bonds make annual payments. If the YTM on these bonds is 7.2 percent, the current price of the bond $______. Round it two decimial places, and do not include the $ sign, e.g., 935.67.
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