whats the solution to problem 6?

he chapter have in both cases, the issuers L the issues here? Why would a company e sellequity in disguise elds [ L01 ] Is the yield to maturity on a bond the same thing BASIC Bond Is YTM the same thing as the coupon rate? Suppose today a (Questions 1-17h conne sells at par. Two years from now, the required return on the FINAN ent ists ILO21 Suppose you buy a 7 percent coupon, 20-yea n bond what is the coupon rate on the bond then? The YTM lds [LO2] Suppose you buy a 7 percent coupon. 20-ye (ing Bond aPen when it's first interest to the 1 Even though most corporate bonds in the United States LO21 Su sued. If interest rates suddenly rise to 15 percent, what LO2 nually, bonds issued elsewhere often have annual coupon valuing mian n Pay unpose a German company issues a bond 3 ye.7 percent, what is the current price of the bond? coupon with a par value of 1,000, paid annually. If the yield to maturity, and a coupon rate of 5.8 percent to y A Japanese company has a bond outstanding that sells for 53 percety and matures in 16 years. What is the yield to maturity of this bond? Yields ofits100,000 par value. The bond has a coupon rate of 3.4 percent 91. sL2] Essary Enterprises has bonds on the market making anmual 74 Coupon with eight years to maturnty, a par value of $1,000, and selling for $948. At the bonds yield 5.9 percent. What must the coupon rate be on the bonds? ices [LO2] Sqeekers Co. issued 15-year bonds a year ago at a coupon rate this price, Bond t The bonds make semiannual payments and have a par value of S1,000. of 4.1 percent. The If the YTM on these bonds is 4.5 percent, what is the current bond price? , Bond Yields [LO2] Heginbotham Corp. issued 20-year bonds two years ago at a coupon rate of 5.3 percent. The bonds make semiannual payments. If these bonds curently sell for 105 percent of par value, what is the YTM? o maturity, a YTM of 5.3 percent, a par value of $1,000, and a curre $965. The bonds make semiannual payments, What must the coupon rate be on these bonds? &Coupon Rates [LO2] DMA Corporation has bonds on the market with 14.5 years Zero Coupon Bonds [LO2] You find a zero coupon bond with a par value of 10,000 and 17 years to maturity. If the yield to maturity on this bond is 4.9 percent. Valuing Bonds [LO2] Yan Yan Corp. has a $2,000 par value bond outstanding with a coupon rate of 4.9 pai hat is the price of the bond? Assume semiannual compounding periods. percent paid semiannually and 13 years to maturity. The yield to inty of the bond is 3.8 percent. What is the price of the bond