Question: Bond Valuation: 1. Five years ago, Briar Corp issued ($ 50,000,000) in corporate bonds. The coupon rate is (5.75%) and the bonds mature in exactly

Bond Valuation: 1. Five years ago, Briar Corp issued $\$ 50,000,000$ in corporate bonds. The coupon rate is $5.75\%$ and the bonds mature in exactly 15 years. If the current market rate of return on these bonds is $4.82\%$, what is the current price of the bonds? 2. Six years ago, you purchased 10 of the HCA Inc Bonds for $\$ 1,002.75$. The October 20,2017 bond quote is listed below. A coupon payment was paid yesterday on all the following bonds. \begin{tabular}{|l|l|l|l|l|l|l|l|}\hline Issuer & Coupon & Maturity & Rating Moody's/S\&P & High & Low & Last & Change \\\hline Anheuser-Busch Inbev Fin Inc & 4.700\% & 4/09/2028 & A3/A- & 111.799 & 111.184 & 111.521 & 0.871\\\hline AT\&T Inc & 5.150\% & 10/09/2030 & Baa1/BBB+ & 103.250 & 99.912 & 101.027 & 1.239\\\hline HCA Inc & 5.875\% & 4/09/2026 & B1/B+ & 106.575 & 105.318 & 105.500 & -1.1875\\\hline Dish DBS Corp & 5.875\% & 10/09/2024 & Ba3/B+ & 104.687 & 101.000 & 102.000 & -2.265\\\hline \end{tabular} a) What is the current yield on the AT\&T Bonds? b) What is the YTM on the HCA In Bonds? c) Inflation is expected to be $2.5\%$ annually over the next 15 years. What is the expected real return of HCA Inc? d) If you sold your HCA Bonds today, what is your holding period yield?

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