Instructions: Please write all your answers legibly Please show all the inputs entered in financial calculators. . Please use at least 4 decimal places accuracy. Partial credit will be given if the procedure is correct but the answer is wrong The process is graded. So, the correct answer without supporting work is of little value. Good Luck! . Problem Set-2 1. O'Brien Lad's outstanding bonds have a $1,000 par value. and they mature in 25 years. Their nominal yield to maturity is 9.25%, they pay interest semiannually, and they sell at a price of $975. What is the bond's nominal coupon interest rate? 2. The Pennington Corporation issued bonds on January 1, 1987. The bonds were sold at par, had 12% annual coupon, paid semi-annually, and mature on December 31, 2016 a) What was the Yield-to-Maturity (YTM) on the date the bonds were issued? b) What was the price on January 1, 1992, assuming interest rates have fallen to 10%? c) Find the current yield, capital gains losses yield and total yield on January 1, 1992 3. McCue Inc.'s bonds currently sell for $1,250. They pay a S120 annual coupon, have a 15-year maturity, and a $1,000 par value, but they can be called in 5 years at $1.050. What is the bond's Yield to Maturity and its Yield to Call? 4. Cosmic Communications Inc. is planning two new issues of 25-year bonds. Bond Par will be sold at its $1,000 par value, and it will have a 10% semiannual coupon, Bond OID will be an Original Issue Discount bond, and it will also have a 25-year maturity and a 1.000 par value, but ats semiannual coupon will be only 6.25%. If both bonds are to provide investors with the same effective yield, bow many of the OID bonds must Cosmic issue to raise $3,000,000 5. A 25-year, $1,000 par value bond has an 8.5% annual coupon. The bond currently sells for $875. If the yield to maturity remains at its current rate, what will the price be 3 years from now