Reference no: EM132638430
Please show the detailed calculations and EXCEL formula breakdown that goes with it for easier understanding.
Section 3: Bond Valuation
1. The Morrissey Company's bonds mature in 7 years, have a par value of $1,000, and make an annual coupon payment of $70. The market interest rate for the bonds is 8.5%. What is the bond's price?
2. Masson Inc. recently issued noncallable bonds that mature in 10 years. They have a par value of $1,000 and an annual coupon of 5.5%. If the current market interest rate is 7.0%, at what price should the bonds sell?
3. Ezzell Enterprises' noncallable bonds currently sell for $1,165. They have a 15-year maturity, an annual coupon of $95, and a par value of $1,000. What is their yield to maturity?
4. Quigley Inc.'s bonds currently sell for $1,080 and have a par value of $1,000. They pay a $100 annual coupon and have a 15-year maturity, but they can be called in 5 years at $1,125. What is their yield to maturity (YTM)?
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: You bought a stock one year ago for ?$50.16 per share and sold it today for ?$44.84 per share. It paid a ?$1.48 per share dividend today
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Assignment on bond valuation
: The Morrissey Company's bonds mature in 7 years, have a par value of $1,000, and make an annual coupon payment of $70.
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