Question
Q1.(Bond valuation) Doisneau 19-year bonds have an annual coupon interest of 8 percent, make interest payments on a semiannual basis, and have a $1,000 par
Q1.(Bond valuation) Doisneau 19-year bonds have an annual coupon interest of 8 percent, make interest payments on a semiannual basis, and have a $1,000 par value. If the bonds are trading with a market's required yield to maturity of 16 percent, are these premium or discount bonds? Explain your answer. What is the price of the bonds?
please provide also the price of bond with the explanation
Q2.(Bond valuation) A bond that matures in
10 years has a $1,000par value. The annual coupon interest rate is 13 percent and the market's required yield to maturity on a comparable-risk bond is
17 percent. What would be the value of this bond if it paid interest annually? What would be the value of this bond if it paid interest semiannually?
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