Yur usin grdutd frm th Mhnil nginring dprtmnt f MTU lst yr nd sh strtd t wrk immditly. Sh hs sm svings nd sh is thinking but invsting in sm bnds. Unfrtuntly, sh is nt gd t finn nd sh nnt did n whih bnds nd stks t invst in. Sh knws tht yu r tking Prinipls f Finn this smstr thus sh sks yur pinin. Hr frinds suggstd hr thr bnds issud by th sm mpny; Mnstrs In. ssum tdy is July 1, 2023

Bnd 1: pur disunt bnd. This bnd is n-yr bnd with $10,000 pr vlu. Th yild t mturity (YTM) f this bnd is 6%.

Bnd 2: 7.5% upn bnd with smi-nnul upn pymnts nd $1,000 pr vlu. It hs 10 yrs until mturity nd slling fr $1,035.53 in th mrkt tdy.

Bnd 3: llbl bnd. This is n 8.3% upn bnd with smi-nnul upn pymnts nd $1,000 pr vlu. It hs 10 yrs until mturity nd th YTM f this bnd is 8.3%.

. lult th pri f bnd 1.

b. Stt wht kind f bnd th bnd 2 is nd lult its YTM.

. Stt th pri f th bnd 3.

d. Yu r rding finnil nws nd lrn tht Bnd 1 is slling fr $9,200 nd Bnd 3 is slling fr $1,100 in th mrkt. Did whih bnd(s) is bttr invstmnt pprtunity fr nw nd stt why.

. ll f ths bnds r issud by th sm mpny but thy hv diffrnt YTMs. Th YTM f th first bnd is th lwst f ll thr. Furthrmr, bnd 2 nd bnd 3 r issud t th sm tim with th sm tim t mturity. Givn ll this, brifly disuss th rsns fr diffrns in YTM f ths thr bnds issud by th sm mpny.

f. ssum n yr pssd (tdy is July 1, 2024) nd th YTM fr th snd bnd bms 8%. lult th pri f bnd 2 givn its nw YTM.

g. lult th urrnt yild, pitl gins yild nd ttl rturn n Bnd 2 n July 1, 2024.