Question: HM Fox Enterprises has two bond issues outstanding. The first is a 3 0 - year 9 % coupon bond issued 1 4 years ago.

HM Fox Enterprises has two bond issues outstanding. The first is a 30-year 9% coupon bond issued 14 years ago. The second is a 20 vear 5% coupon bond issued 4 years ago. Each bond has a face value of $1,000 and pays makes annual coupon payments.
a. If the yield to maturity on these bonds is 7%, what is the value of each $1,000 bond? (7
points)
b. Which of the above bonds is more sensitive to interest rate fluctuations? (7 points)
c. Assuming no change in Fox Corp's bond rating, what has happened to interest rates in
the last 14 years? What has happened in the last 4 years? Explain your answer (6
points)
HM Fox Enterprises has two bond issues outstanding. The first is

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