What is the bond current market price

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Reference no: EM131990013

1. Madsen Motors's bonds have 20 years remaining to maturity. Interest is paid annually; they have a $1,000 par value; the coupon interest rate is 9.5%; and the yield to maturity is 10%. What is the bond's current market price? Round your answer to the nearest cent.

2. A bond has a $1,000 par value, 15 years to maturity, and a 8% annual coupon and sells for $1,080.

a) What is its yield to maturity (YTM)? Round your answer to two decimal places.

b) Assume that the yield to maturity remains constant for the next 4 years. What will the price be 4 years from today? Do not round intermediate calculations. Round your answer to the nearest cent.

3. Nesmith Corporation's outstanding bonds have a $1,000 par value, a 6% semiannual coupon, 20 years to maturity, and an 10.5% YTM. What is the bond's price? Round your answer to the nearest cent.

Reference no: EM131990013

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