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pls answer all questions A bond has a $1,000 par value, 10 years to maturity, and a 7% annual coupon and sells for $985. a.
pls answer all questions
A bond has a $1,000 par value, 10 years to maturity, and a 7% annual coupon and sells for $985. a. What is its yield to maturity (YTM)? Round your answer to two decimal places. of b. Assume that the yield to maturity remains constant for the next three years. What will the price be 3 years from today? Do not round intermediate calculations, Round your answer to the nearest cent. 5 A bond has a $1,000 par value, 10 years to maturity, and a 7% annual coupon and sells for $985. a. What is its vield to maturity (YTM)? Round your answer to two decimal places. b. Assume that the yield to maturity remains constant for the next three years. What will the price be 3 years from today? Do not round intermediate calculations. Round your answer to the nearest cent. 5 Madsen Motors's bonds have 20 years remaining to maturity. Interest is paid annually, they have a $1,000 par value, the coupen interest rate is 7%, and the yield to maturity is 9%. What is the bond's current market price? Round your answer to the nearest cent. Nesmith Corporation's outstanding bonds have a $1,000 par value, a 7% semiannual coupon, 9 years to maturity, and a 10% YTM. What is the bond's price? Round your answer to the nearest cent. Farrimon industries bonds have 4 years left to maturity. Interest is paid annually, and the bonds have a $1,000 par value and a coupon rate of 10%6. a. What is the yield to maturity at a current market price of 1. $858 ? Round your answer to two decimal places. of 2. $1,123 ? Round your answer to two decimal places. % b. Would you pay $858 for each bond if you thought that a "fair" market interest rate for such bonds was 14% that is, if rd: 14%6 ? 1. You would not buy the bond as long as the yleld to maturity at this price is greater than your required rate of returm. 11. You would not buy the bond as long as the yield to maturity at this price is less than the coupon rate on the bond. III. You would buy the bond as long as the yield to maturity at this price is greater than your required rate of return. TV. You would buy the bond as long as the yield to maturity at this price is less than your required rate of return. V. You would buy the bond as long as the yield to maturity at this price equals your required rate of return Step by Step Solution
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