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Use the following information to answer the question(s) below. Consider the following four corporate bonds that are annual-paid coupon: Bond #1 #2 #3 #4 Coupon

Use the following information to answer the question(s) below.

Consider the following four corporate bonds that are annual-paid coupon:

Bond

#1

#2

#3

#4

Coupon Rate

8%

7%

9%

9%

Years to Maturity

5

5

8

5

Face value

$1,000.00

$1,000.00

$1,000.00

$1,000.00

  1. If the YTM of these bonds is 9%, please calculate the PV of each bond.

  1. Which bond is traded at discount and which bond is traded at premium?

  1. If the price of bond #2 is $1,200, what is the YTM of #2?

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