What is the current price of the bond

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1.Valuing Bonds: Microhard has issued a bond with the following characteristics:

Par: $1,000

Time to maturity: 23 years

Coupon Rate: 7 percent

Semiannual payments

Calculate the price of this bond if the YTM is:

a. 7 percent

b. 9 percent

c. 5 percent

2. Bond Yields: Skolits Corp. issued 15-year bonds two years ago at a coupon rate of 5.1 percent. The bonds make semiannual payments. If these bonds currently sell for 105 percent of par value, what is the YTM?

3. Valuing Bonds: Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company has a bond outstanding with a par value of €1,000, 16 years to maturity, and a coupon rate of 4.7 percent paid annually. If the yield to maturity is 3.4 percent, what is the current price of the bond?

Reference no: EM131657459

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