The Miami Corporation issued a new series of bonds on January 1, 1992. The bonds were sold at par ($1,000); had a 11% coupon; and mature in 30 years, on December 31, 2021. Coupon payments are made semiannually (on June 30 and December 31)

. 5.Wonderful Worlds outstanding bonds have a $1,000 par value, a 10% semiannual coupon, 8 years to maturity, and an 8.5% YTM. What is the bond's price?

6. A firm's bonds have a maturity of 10 years with a $1,000 face value, have an 8% semiannual coupon, are callable in 5 years at $1,025, and currently sell at a price of $1,100. What are their nominal yield to maturity and their nominal yield to call? What return should investors expect to earn on these bonds?

7. Media Inc. has bonds outstanding with 9 years left to maturity. The bonds have an 9% annual coupon rate and were issued 1 year ago at their par value of $1,000. However, due to changes in interest rates, the bond's market price has fallen to $901.40. The capital gains yield last year was9.86%

. a. What is the yield to maturity?

b. For the coming year, what are the expected current and capital gains yields? (Hint: Refer to Footnote 7 for the definition of the current yield and to Table 7.1.)

c. Will the actual realized yields be equal to the expected yields if interest rates change? If not, how will they differ?