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Problem 1 Intro One of IBM's bond issues has an annual coupon rate of 4.1%, a face value of $1,000 and matures in 12 years.

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Problem 1 Intro One of IBM's bond issues has an annual coupon rate of 4.1%, a face value of $1,000 and matures in 12 years. Part 1 7 8 Attempt 1/2 for 10 pts. What is the value of the bond if the required return is 5%? 0+ decimals Submit Part 2 7 8 Attempt 1/2 for 10 pts. What is the value of the bond if the required return is 6%? 0+ decimals SubmitProblem 2 Intro A corporate bond has 18 years to maturity, a face value of $1,000, a coupon rate of 5.4% and pays interest semiannually. The annual market interest rate for similar bonds is 3.4% and is quoted as a semi-annually compounded simple interest rate, i.e 1.7% per 6-month period. Part 1 Attempt 1/2 for 10 pts. What is the price of the bond? 0+ decimals SubmitProblem 4 Intro The University of California has two bonds outstanding. Both issues have the same credit rating, a face value of $1,000 and a coupon rate of 6%. Coupons are paid twice a year. Bond A matures in 1 year, while bond B matures in 30 years. The market interest rate for similar bonds is 11% (quoted as a semi-annual simple interest rate, so 5.5% per 6-month period). Part 1 Attempt 1/2 for 10 pts. What is the price of bond A? 0+ decimals Submit Part 2 1 8 / Attempt 1/2 for 10 pts. What is the price of bond B? 0+ decimals Submit Part 3 1 8 P Attempt 1/2 for 10 pts. Now assume that yields increase to 14%. What is the price of bond A? 0+ decimals Submit Part 4 1 8 P Attempt 1/2 for 10 pts. What is now the price of bond B? 0+ decimals Submit

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