1. Magnolia Supply sold a 25-year, 10 percent annual coupon bond in 2009, which will mature...

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1. Magnolia Supply sold a 25-year, 10 percent annual coupon bond in 2009, which will mature in 2034, 10 years from today. The bond's par value is $1,000. In 2024, fifteen years after the bond was issued, bondholders require a 12.5 percent rate of return due to expected inflation and other global concerns. What price would they be willing to pay for the bond today, when it has 10 years remaining to maturity? A. $1,098.23 B. $1,064.18 C. $1,000.00 D. $861.59 E. $834.18 2. In Problem #1, we found the price of Magnolia Supply's 10 percent coupon bond today. If investors remain satisfied with a 12.5 percent return (yield to maturity), what is the capital gains rate that investors will expect as the bond enters its tenth year? A. 12.500% B. 11.606% C. 0.894% D. 0.394% E. 0.116% 3. In Problem #1, we found the price of Magnolia Supply's 10 percent coupon bond today. If investors remain satisfied with a 12.5 percent return (yield to maturity), what price would they be willing to pay for the bond in one year (2025), that is, when the bond has 9 years remaining to maturity? A. $1,092.47 B. $1,059.95 C. $1,000.00 D. $869.29 E. $800.44 4. Several years ago Chimney Rock Associates issued a 7 percent coupon bond that has 15 years remaining till it matures. The $1,000 par value bond is currently selling for $838.79. What rate of return are the investors demanding on the bond issue, that is, what is the bond's yield to maturity? A. 11% B. 9% C. 7% D. 6% E. 5% 1. Magnolia Supply sold a 25-year, 10 percent annual coupon bond in 2009, which will mature in 2034, 10 years from today. The bond's par value is $1,000. In 2024, fifteen years after the bond was issued, bondholders require a 12.5 percent rate of return due to expected inflation and other global concerns. What price would they be willing to pay for the bond today, when it has 10 years remaining to maturity? A. $1,098.23 B. $1,064.18 C. $1,000.00 D. $861.59 E. $834.18 2. In Problem #1, we found the price of Magnolia Supply's 10 percent coupon bond today. If investors remain satisfied with a 12.5 percent return (yield to maturity), what is the capital gains rate that investors will expect as the bond enters its tenth year? A. 12.500% B. 11.606% C. 0.894% D. 0.394% E. 0.116% 3. In Problem #1, we found the price of Magnolia Supply's 10 percent coupon bond today. If investors remain satisfied with a 12.5 percent return (yield to maturity), what price would they be willing to pay for the bond in one year (2025), that is, when the bond has 9 years remaining to maturity? A. $1,092.47 B. $1,059.95 C. $1,000.00 D. $869.29 E. $800.44 4. Several years ago Chimney Rock Associates issued a 7 percent coupon bond that has 15 years remaining till it matures. The $1,000 par value bond is currently selling for $838.79. What rate of return are the investors demanding on the bond issue, that is, what is the bond's yield to maturity? A. 11% B. 9% C. 7% D. 6% E. 5%