What is the bond current market price

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1. Madsen Motors's bonds have 10 years remaining to maturity. Interest is paid annually; they have a $1,000 par value; the coupon interest rate is 8%; and the yield to maturity is 10%. What is the bond's current market price? Round your answer to the nearest cent.

2. Phil takes out a loan for 100,000 to be repaid in 360 monthly installments at an annual effective interest rate of 10 %. Which of the 360 payments will be the first in which the amount of principal paid is more than two-thirds the amount of interest paid?

3. Bloome Co.'s stock has a 25% chance of producing a 24% return, a 50% chance of producing a 9% return, and a 25% chance of producing a –12% return. What is the firm's expected rate of return (in percent)?

Reference no: EM131875304

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