Problem 7-1 Bond valuation

Callaghan Motors' bonds have 8 years remaining to maturity. Interest is paid annually, they have a $1,000 par value, the coupon interest rate is 9%, and the yield to maturity is 12%. What is the bond's current market price?

Problem 7-2

A bond has a $1,000 par value, 20 years to maturity, and a 8% annual coupon and sells for $1,110.

What is its yield to maturity (YTM)? Round your answer to two decimal places. %

Assume that the yield to maturity remains constant for the next 5 years. What will the price be 5 years from today? Round your answer to the nearest cent.

7-3

Nungesser Corporation's outstanding bonds have a $1,000 par value, a 10% semiannual coupon, 11 years to maturity, and an 7% YTM. What is the bond's price? Round your answer to the nearest cent.

Problem 7-4 Yield to maturity

A firm's bonds have a maturity of 14 years with a $1,000 face value, have an 11% semiannual coupon, are callable in 7 years at $1,239, and currently sell at a price of $1,409.57.

What is their nominal yield to maturity? Round your answer to two decimal places. %

What is their nominal yield to call? Round your answer to two decimal places. %