Market required yield to maturity

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1. The value of the bond is? $______ enter your response here. (Round to the nearest? cent.) Calculate the value of a bond that matures in 13 years and has a $1,000 par value. The annual coupon interest rate is 14 percent and the? market's required yield to maturity on a? comparable-risk bond is 9 percent.

2. A bond that matures in 12 years has a ?$1,000 par value. The annual coupon interest rate is 9 percent and the? market's required yield to maturity on a? comparable-risk bond is 16 percent. What would be the value of this bond if it paid interest? annually? What would be the value of this bond if it paid interest? semiannually?

The value of this bond if it paid interest annually would be ?$______enter your response here. ?(Round to the nearest? cent.)

3. The market price is ?$1,150 for a 10?-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?

The? bond's yield to maturity is ______% enter your response here?.? (Round to two decimal? places.)

4. Abner? Corporation's bonds mature in 16 years and pay 14 percent interest annually. If you purchase the bonds for ?$1,075?, what is your yield to? maturity?

Your yield to maturity on the Abner bonds is _______% enter your response here?. ?(Round to two decimal? places.)

Reference no: EM133060113

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