Question: Hello, I needed help with these problems. Please show work 1.Semiannual Coupons Roxy Bonds will mature in 16 years, the coupon rate of the bond

Hello, I needed help with these problems. Please show work

1.Semiannual Coupons

Roxy Bonds will mature in 16 years, the coupon rate of the bond is 5% paid SEMIANNUALLY, if the yield to maturity is 7%; what is the value of the bond? Assume a face value of $1,000.

____ Please enter 2 digits after the decimal point

2.

. Zero Coupon Bond

The Treasury Department sells a zero-coupon bond that will mature in two years. The bond has a face value of $10,000, and sold at auction for $9,400. What is the annual return for an investor buying the bond?

____% Please enter 2 digit after the decimal point

3.

Calculating YTC

Sadik Inc.'s bonds currently sell for $1,280 and have a par value of $1,000. They pay a $135 annual coupon and have a 15-year maturity, but they can be called in 5 years at $1,050. What is their yield to call (YTC)?

(Pick one)

  • 7.45%
  • 7.08%
  • 6.39%
  • 7.82%

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