Question: Bond Values A Microgates Industries bond has a 1 0 % coupon rate and a $ 1 , 0 0 0 face value. Interest is

Bond Values A Microgates Industries bond has a 10% coupon rate and a $1,000 face
value. Interest is paid semiannually, and the bond has 20 years to maturity.
a. If investors requires a 12% yield, what is the bonds value?
b. What is the effective annual yield on the bond?
2. Bond Yields A Macrohard Corp. bond carries an 8% coupon, paid semiannually. The
par value is $1,000, and the bond matures in 6 years.
a. If the bond currently sells for $911.37, what is its yield to maturity?
b. What is the effective annual yield?

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