Reference no: EM132955591

Any assistance is appreciated!

1. Calculate the value of a bond that matures in 13 years and has a $1,000 par value. The annual coupon interest rate is 11 percent and the? market's required yield to maturity on a? comparable-risk bond is 13 percent. The value of the bond is ?$ ? (Round to the nearest? cent.)
2. A bond that matures in 9 years has a ?$1,000 par value. The annual coupon interest rate is 11 percent and the? market's required yield to maturity on a? comparable-risk bond is 18 percent. What would be the value of this bond if it paid interest? annually? (Round to the nearest? cent.) What would be the value of this bond if it paid interest? semiannually? (Round to the nearest? cent.)
3. Pybus, Inc. is considering issuing bonds that will mature in 18 years with an annual coupon rate of 11 percent. Their par value will be ?$1,000?, and the interest will be paid semiannually. Pybus is hoping to get a AA rating on its bonds? and, if it? does, the yield to maturity on similar AA bonds is 9 percent. ? However, Pybus is not sure whether the new bonds will receive a AA rating. If they receive an A? rating, the yield to maturity on similar A bonds is 10 percent. What will be the price of these bonds if they receive either an A or a AA? rating? (Round to the nearest? cent.)
4. The market price is ?$900 for a 17?-year bond ?($1,000 par? value) that pays 9 percent annual? interest, but makes interest payments on a semiannual basis ?(4.5 percent? semiannually). What is the? bond's yield to? maturity? (Round to two decimal? places.)
5. ?Fingen's 18?-year, ?$1,000 par value bonds pay 15 percent interest annually. The market price of the bonds is ?$890 and the? market's required yield to maturity on a? comparable-risk bond is 18 percent.

a. Compute the? bond's yield to maturity.

b. Determine the value of the bond to? you, given your required rate of return.

c. Should you purchase the? bond?