The Bozo Company has an 8% coupon bond outstanding.The bond makes semiannual coupon payments and has 12 years remaining to maturity.Its market price is $846.64.It is issuing a new 20-year bond to finance a factory to make new Bozos.The new bond will make annual coupon payments.

1)What is the yield to maturity of the Bozo Company's existing bonds?

2)What coupon rate should be set for the new bonds of the Bozo Company for these bonds to sell at par?

Bonds of RAR Foods are selling in the market for $854.66.These bonds carry a 9 percent coupon paid semiannually, and have 15 years remaining to maturity.

3)What is the bond's yield to maturity?

4) What will be the bond's price if yield to maturity drops to 10%, assuming that all other factors remain the same?

5) The Gallow's Company bond has a bond outstanding that has 10 years remaining to maturity. The bond has a coupon rate of 10.50 percent, paid quarterly.

If the yield to maturity is 12.0 percent, what is the market value of this bond?