33, 34, 35, 36,

33) How does the bond rating affect an investor's required rate of retun? What factors affect a bond's rating? (5) 34) What are the three important elements of asset valuation? (5) 35) A bond with a $1,000 face value and a 10 percent annual coupon rate matures in 15 years (5) Determine the value of the bond to a friend of yours with a required rate of return of 13% a. b. A zero coupon bond with similar risk is selling for S180. The bond has a face value of $1,000 and matures in 15 years. Your friend asks you which bond she should invest in, the zero coupon bond or the bond in part (a). Which bond do you recommend, and why? Assume the market price of the bond in part (a) is $820. (5) 36) Graystone bonds have a maturity value of $1,000. The bonds carry a coupon rate of 12 percent. Interest is paid semiannually. The bonds will mature in nine years. If the current market price is $976.50 what is the yield to maturity on the bond? (5) what is the current yield on the bond? (5) a. b