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Question 1 - 4 marks You are called in as a financial analyst to appraise the bonds of the XYZ Corporation. The $1,000 par value

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Question 1 - 4 marks You are called in as a financial analyst to appraise the bonds of the XYZ Corporation. The $1,000 par value bonds have a quoted annual interest rate of 16 percent, which is paid semiannually. The yield to maturity on the bonds is 13 percent annually. There are 25 years to maturity. Include all calculations Required: a) Compute the price of the bonds.[2 marks) b) with 15 years remaining to maturity, if yield to maturity goes down substantially to 10 percent, what will be the new price of the bonds? (2 marks) c) with a price of $900 what is the yield to maturity if bond has 10 year to maturity? (2 marks) Question 2 - 4 marks You are called in as a financial analyst to appraise the bonds from 3 Corporations: 1) A Corporation. The $1,000 par value bonds have a quoted annual interest rate of 16 percent, which is paid semiannually. The yield to maturity on the bonds is 13 percent annually. There are 25 years to maturity. Include all calculations. 2) B Corporation. The $1,000 par value bonds have a quoted annual interest rate of 15 percent, which is paid semiannually. The yield to maturity on the bonds is 10 percent annually. There are 25 years to maturity. Include all calculations. 3) C Corporation. The $1,000 par value bonds have a quoted annual interest rate of 16 percent, which is paid semiannually. The yield to maturity on the bonds is 10 percent annually. There are 20 years to maturity. Include all calculations. Required: a) Compute the price of all three bonds.[6 marks) b) Prepare bar chart showing price of all three bonds as per example below (8 marks)

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