What are the bonds price and ytm

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1. Madsen Motors' s bonds have 23 years remaining to maturity. Interest is paid annually; they have a $1,000 par value; the coupon interest rate is 9%; and the yield to maturity is 11%. What is the bond's current market price?

2. A bond has a $1,000 par value, 12 years to maturity, and an 8% annual coupon and sells for $980.a. What is its yield to maturity (YTM)? b. Assume that the yield to maturity remains constant for the next three years. What willthe price be 3 years from today?

3. Aninvestorhastwobondsinhisportfoliothathaveafacevalueof$1,000and pay an 11% annual coupon. Bond L matures in 12 years, while Bond S matures in 1 year. A. What will the value of each bond be if the going interest rate is 6%, ?Assume that only one more interest payment is to be made on Bond S at its maturity and that 12 more payments are to be made on Bond L.

4. A 7% semiannual coupon bond matures in 4 years. The bond has a facevalue of $1,000 and a current yield of 7.5401%. What are the bond's price and YTM?

Reference no: EM131137888

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