ABC Co issues a zero coupon bond with 5 years to maturity. Investor's required rate of return is 3.25%, What is the price of the zero coupon bond issued?

ABC Corp. wants to issue a fixed coupon bond. The firm has estimated that its cost of debt is 12%. It has decided to issue 20 year FCB. The annual coupon rate is 8%, paid semi-annually. What is the price of ABC Corp's bond?

The price of the coupon paying bond is $1111. The firm has estimated that its cost of debt is 6.5%. The bond has a maturity of 10 years and paid semi-annually. What is the annual coupon rate of this FCB?

The price of the taxable fixed coupon bond is $1200. The bond has a maturity of 15 years and pays semi-annually an annual coupon rate of 10%. If the tax rate is 20%, what is the price of non-taxable bond that has the same terms as the above taxable bond?

ABC company has issued a bond that is rated as AA. It has a maturity of 8 years and pays semi-annually at an annual coupon rate of 7%. If the current risk-free rate is 1.5% and the risk premium associated with AA bond is is 3.5%, what is the current price of the bond?

Cookeville City Council is trying to issue a municipal bond that is tax free. A current taxable bond that has similar risk characteristics is traded at $987.65. The taxable bond has 30-year maturity with semi-annual coupon payment at 6% annual coupon rate. If the tax rate is 35%, what is the annual coupon rate that the Cookeville City Council should provide on its municipal bond to equate its price to that of the taxable bond?

All else being equal, the price of the premium bond __________over time.

All else being equal, if the yield-to-maturity of a bond decreases, then the price _________.