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QUESTION 2 (Q2 - Q4 are a set) Company B issues an annual coupon bond with face value of $1,000, YTM of 10%, a coupon

QUESTION 2

  1. (Q2 - Q4 are a set) Company B issues an annual coupon bond with face value of $1,000, YTM of 10%, a coupon rate of 5%, and 7 years to maturity. What is the price of this bond?

  2. (Q2-Q4) In addition to the information in 2 and 3. We know that Company B issued 10,000 bonds (Q2) and has 86,000 shares of stock (Q3). If company B has $25 million in cash, what is the Enterprise Value of company B? (Answer in millions. EX $2,300,000, put 2.3)

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