Question: 1) (3 pts) A $1,000 face value bond currently has a yield to maturity of 5.5 percent (compounded semi-annually). The bond matures in 9 years
1) (3 pts) A $1,000 face value bond currently has a yield to maturity of 5.5 percent (compounded semi-annually). The bond matures in 9 years and pays interest semi-annually. The coupon rate is 5.0 percent. What is the price today of this bond? 2) (3 pts) Best Western has $1,000 face value bonds outstanding. These bonds pay interest semiannually, mature in 9 years, and have a 7.0 percent coupon rate. The current price is quoted at $1028.00. What is the yield to maturity for these bonds? 3) (4 pts) XYZ has a \$1000 Face Value 5\% Coupon Bond (paid semi-annually). The bond is selling for $1081.76 today and matures in 10 years. (The YTM today is 4% compounded semiannually) a) What will be the price of the bond in 4 years (the bonds now have 6 years left until maturity) if the YTM investors demand in 4 years is still 4% compounded semi-annually? b) What will be the price of the bond in 4 years (the bonds now have 6 years left until maturity) if the YTM investors demand in 4 years is 3.6% compounded semi-annually? 4) (3 pts) ABC Co has $1000 face value bonds outwstanding that mature in 12 years, but are callable in 4 years at a call premium of $1045. The bonds have 6% coupon (paid semi-annually). If the bonds currently sell for $1014, what is the Yield to Call for these bonds
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