Problem 4 8 Yield to Maturity and Call with Semiannual Payments Thatcher Corporation's bonds will mature in 20 years The bonds have a face value of $1,000 and an 12 coupon rate, paid semiannually The price of the bonds is $850 The bonds are callable in 5 years at a call price of $1,050 Round your answers to two decimal places What is their yield to maturity What is their yield to call Problem 4 9 Bond Valuation and Interest Rate Risk The Garraty Company has two bond issues outstanding Both bonds pay $100 annual interest plus $1,000 at maturity Bond L has a maturity of 15 years, and Bond S has a maturity of 1 year What will be the value of each of these bonds when the going rate of interest is 5 Assume that there is only one more interest payment to be made on Bond S Round your answers to the nearest cent Bond L $ Bond S $ What will be the value of each of these bonds when the going rate of interest is 8 Assume that there is only one more interest payment to be made on Bond S Round your answers to the nearest cent Bond L $ Bond S $ What will be the value of each of these bonds when the going rate of interest is 12 Assume that there is only one more interest payment to be made on Bond S Round your answers to the nearest cent Problem 4 10 Yield to Maturity and Required Returns Problem 4 17 What is the yield to maturity at a current market price of $824 Round your answer to two decimal places What is the yield to maturity at a current market price of $1,106 Round your answer to two decimal places Bond Value as Maturity Approaches An investor has two bonds in his portfolio Each bond matures in 4 years, has a face value of $1,000, and has a yield to maturity equal to 9 One bond, Bond C, pays an annual coupon of 10 5 the other bond, Bond Z, is a zero coupon bond Assuming that the yield to maturity of each bond remains at 9 over the next 4 years, what will be the price of each of the bonds at the following time periods Assume time 0 is today Fill in the following table Round your answers to the nearest cent t Price of Bond C Price of Bond Z 0 $ $ 1 2 3 4 The Brownstone Corporation's bonds have 5 years remaining to maturity Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 9

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Problem 4-8 Yield to Maturity and Call with Semiannual Payments Thatcher Corporation's bonds will mature in 20 years. The bonds have a face value of

Problem 4-8 Yield to Maturity and Call with Semiannual Payments

Thatcher Corporation's bonds will mature in 20 years. The bonds have a face value of $1,000 and an 12% coupon rate, paid semiannually. The price of the bonds is $850. The bonds are callable in 5 years at a call price of $1,050. Round your answers to two decimal places.

What is their yield to maturity? %

What is their yield to call?

Problem 4-9 Bond Valuation and Interest Rate Risk

The Garraty Company has two bond issues outstanding. Both bonds pay $100 annual interest plus $1,000 at maturity. Bond L has a maturity of 15 years, and Bond S has a maturity of 1 year.

1. What will be the value of each of these bonds when the going rate of interest is 5%? Assume that there is only one more interest payment to be made on Bond S. Round your answers to the nearest cent.
  
  Bond L $
  
  Bond S $
2. What will be the value of each of these bonds when the going rate of interest is 8%? Assume that there is only one more interest payment to be made on Bond S. Round your answers to the nearest cent.
  
  Bond L $
  
  Bond S $
3. What will be the value of each of these bonds when the going rate of interest is 12%? Assume that there is only one more interest payment to be made on Bond S. Round your answers to the nearest cent
4. Problem 4-10 Yield to Maturity and Required Returns
5. Problem 4-17
  1. What is the yield to maturity at a current market price of $824? Round your answer to two decimal places. %
  2. What is the yield to maturity at a current market price of $1,106? Round your answer to two decimal places.
6. Bond Value as Maturity Approaches
  
  An investor has two bonds in his portfolio. Each bond matures in 4 years, has a face value of $1,000, and has a yield to maturity equal to 9%. One bond, Bond C, pays an annual coupon of 10.5%; the other bond, Bond Z, is a zero coupon bond. Assuming that the yield to maturity of each bond remains at 9% over the next 4 years, what will be the price of each of the bonds at the following time periods? Assume time 0 is today. Fill in the following table. Round your answers to the nearest cent.
  
  t Price of Bond C Price of Bond Z
  
  0 $ $
  
  1
  
  2
  
  3
  
  4
  
  The Brownstone Corporation's bonds have 5 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 9%.