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What is the price of the bond that is being offered

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Question 1: Amalgamated Realty Inc. offers a 8.5 percent coupon bond with annual payments. The yield to maturity is 10.2 percent and the maturity date is 9 years from today. What is the market price of this bond if the face value is $1,000 (Hint: Use Present Value formula)

Question 2: Consider a bond with a coupon rate of 7.5% and annual coupons. The par value is $1,000, and the bond has 6 years to maturity. The yield to maturity is 9 percent.What is the value of the bond. Is the bond selling at a premium or at a discount? Explain. (Hint: Use Present Value formula)

Question 3: Suppose you are reviewing a bond that has a 8.5% annual coupon and a face value of $1,000. There are 19 years to maturity, and the yield to maturity is 6%. What is the price of the bond that is being offered to you? Is the bond being offered at a premium or at a discount? Explain (Hint: Use Present Value formula)

Question 4: Ohio Steel Inc. has a 7 percent coupon bond on the market with 9 years left to maturity. The bond makes aanual payments and currently sells for $815.25. What is the yield to maturity? (Hint: Use RATE formula)

Reference no: EM132495165

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