Apex Corp. has two outstanding bond issues. One issue consists of 8% annual coupon bonds and the other issue consists of zero-coupon bonds. For each bond issue, calculate the bond prices and percentage change in prices when the required rate of return changes from 8% to 9%.

a.Ten years to maturity and the required rate of return goes from 8% to 9%.

b.Twenty years to maturity and the required rate of return goes from 8% to 9%.

c.Ten years to maturity and the required rate of return goes from 8% to 7%.

d.Twenty years to maturity and the required rate of return goes from 8% to 7%.

Part 1

The price of the 8%-coupon bond with 10 years to maturity and 8% required rate of return is $?. (Round to the nearest cent.)

Part 2

The price of the 8%-coupon bond with 10 years to maturity and 9% required rate of return is $?. (Round to the nearest cent.)

Part 3

If the required rate of return goes from 8% to 9%, the percentage change in the price of the 8%-coupon bond with 10 years to maturity is negative ?%. (Round to two decimal places.)

Part 4

The price of the zero-coupon bond with 10 years to maturity and 8% required rate of return is $?. (Round to the nearest cent.)

Part 5

The price of the zero-coupon bond with 10 years to maturity and 9% required rate of return is

$?. (Round to the nearest cent.)

Part 6

If the required rate of return goes from 8 % to 9 %, the percentage change in the price of the zero-coupon bond with 10 years to maturity is negative ?%. (Round to two decimal places.)

Part 7

b. The price of the 8 %-coupon bond with 20 years to maturity and 8 % required rate of return is $?. (Round to the nearest cent.)

Part 8

The price of the 8%-coupon bond with 20 years to maturity and 9% required rate of return is

$?. (Round to the nearest cent.)

Part 9

If the required rate of return goes from 8% to 9%, the percentage change in the price of the 8%-coupon bond with 20 years to maturity is negative ?%. (Round to two decimal places.)

Part 10

The price of the zero-coupon bond with 20 years to maturity and 8 % required rate of return is $?(Round to the nearest cent.)

Part 11

The price of the zero-coupon bond with 20 years to maturity and 9% required rate of return is

$?. (Round to the nearest cent.)

Part 12

If the required rate of return goes from 8 % to 9%, the percentage change in the price of the zero-coupon bond with 20 years to maturity is negative ?%. (Round to two decimal places.)

Part 13

c. The price of the 8%-coupon bond with 10 years to maturity and 7% required rate of return is

$?. (Round to the nearest cent.)

Part 14

If the required rate of return goes from 8% to 7%, the percentage change in the price of the 8%-coupon bond with 10 years to maturity is ?%. (Round to two decimal places.)

Part 15

The price of the zero-coupon bond with 10 years to maturity and 7% required rate of return is

$?. (Round to the nearest cent.)

Part 16

If the required rate of return goes from 8% to 7%, the percentage change in the price of the

zero-coupon bond with 10 years to maturity is ?%. (Round to two decimal places.)

Part 17

d. The price of the 8%-coupon bond with 20 years to maturity and 7% required rate of return is

$?.(Round to the nearest cent.)

Part 18

If the required rate of return goes from 8% to 7%, the percentage change in the price of the 8%-coupon bond with 20 years to maturity is ?%. (Round to two decimal places.)

Part 19

The price of the zero-coupon bond with 20 years to maturity and 7% required rate of return is

$?. (Round to the nearest cent.)

Part 20

If the required rate of return goes from 8% to 7%, the percentage change in the price of the zero-coupon bond with 20 years to maturity is ?%. (Round to two decimal places.)

thank you.