Hi there, Could you please help my solve the problem below A ) The Fox Flooring Company Series A bonds have 5 years to maturity Interest is paid annually the bonds have a $1000 par value and the coupon rate is 9 (show your work) What is the yield to maturity at a current market price of $829 What is the yield to maturity at a market price of $1,104 Whatwouldyoupayforabondifyoubelievedthatappropriateyieldis12 B ) A bond dealer purchased the following bonds with a yield to maturity of 8 Afterwards, yields fell to 7 Complete the table below (show your work) Price at 8 Price at 7 Percentage Change 10 years, 10 coupon 10 years, Zero 5 years, Zero 30 years, Zero

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Question: Hi there, Could you please help my solve the problem below. A.) The Fox Flooring Company Series A bonds have 5 years to maturity. Interest

Hi there,

Could you please help my solve the problem below.

A.) The Fox Flooring Company Series A bonds have 5 years to maturity. Interest is paid annually; the bonds have a $1000 par value; and the coupon rate is 9%. (show your work)

What is the yield to maturity at a current market price of $829?
What is the yield to maturity at a market price of $1,104?
Whatwouldyoupayforabondifyoubelievedthatappropriateyieldis12%?

B.) A bond dealer purchased the following bonds with a yield to maturity of 8%. Afterwards, yields fell to 7%. Complete the table below: (show your work)

Price at 8% Price at 7% Percentage Change

10 years, 10% coupon

10 years, Zero

5 years, Zero

30 years, Zero

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