Question: Johnson Construction Inc. has issued 20-year $1,000 face value, 8% annual coupon bonds, with a yield to maturity of 10%. What is current price of

  1. Johnson Construction Inc. has issued 20-year $1,000 face value, 8% annual coupon bonds, with a yield to maturity of 10%. What is current price of the bond?

  1. Petty Productions Inc. recently issued 30-year $1,000 face value, 12% annual coupon bonds. Themarket discount rate for this bond is only 7%. What is the current price of this bond?

  1. Progressive Plastics Inc. issued 30-year 7% annual coupon bonds five years ago. Currently, the yield to maturity is 9.65% on these $1,000 par value bonds. What is the current price per bond?

  1. Phillips Fine Fixtures Inc. wishes to issue new bonds but is uncertain how the market would set the yield to maturity. The bonds would be 20-year, 7% annual coupon bonds with a $1,000 par value. Fisher has determined that these bonds would sell for $1,050 each. What is the yield to maturity for these bonds?

  1. What is the yield to maturity (YTM) on a 6% bond that is currently trading for $1,100 and matures in 10 years?

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