Question: Begin with a complete analysis of 2017 Now Complete the analysis of the 2018 The A-Line Company acquired a $2 million face value bond that

The A-Line Company acquired a $2 million face value bond that has

a 9% coupon rate (pays interest annually on December 31) on January 1, 2017. The bond matures on December 31, 2022. On January 1, Begin with a complete analysis of 2017

Now Complete the analysis of the 2018

The A-Line Company acquired a $2 million face value bond that has a 9% coupon rate (pays interest annually on December 31) on January 1, 2017. The bond matures on December 31, 2022. On January 1, 2017, the market yield for bonds of equivalent risk and maturity was 7%. Required ....... Requirement a. How much did A-Line pay for this bond on January 1, 2017? (Enter all currency amounts in dollars, not in millions. Use a financial calculator for all present value computations. Enter your final answer as a positive number, and round to the nearest whole dollar.) Amount required to purchase bonds Requirement b. On December 31, 2017, the market yield for bonds of equivalent risk and maturity is 8%. What would be the market value of this bond on December 31, immediately after the coupon payment on that date? (Enter all currency amounts in dollars, not in millions. Use a financial calculator for all present value computations. Enter your final answer as a positive number, and round to the nearest whole dollar.) Market value of bonds on Dec. 31, 2017 Requirement c. On December 31, 2018, the market yield for bonds of equivalent risk and maturity is 9%. What would be the market value of this bond on December 31, immediately after the coupon payment on that date? (Enter all currency amounts in dollars, not in millions. Use a financial calculator for all present value computations. Enter your final answer as a positive number and round to the nearest whole dollar.)

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