Question: Math Interest Theory/ Financial Math Please use formulas and not a table and not the TVM function 9. (4pts) A $1000 par value 6% bond

Math Interest Theory/ Financial Math

Please use formulas and not a table and not the TVM function

9. (4pts) A $1000 par value 6% bond with semiannual coupons matures at the end of ten years. The bond is callable at $1100 five years after issue. Find the maximum price that an investor can pay and still be certain of a yield rate of (1) 5%, (2) 7%, convertible semiannually. (Answers: (1) $1121.88, (2) $979.19) 9. (4pts) A $1000 par value 6% bond with semiannual coupons matures at the end of ten years. The bond is callable at $1100 five years after issue. Find the maximum price that an investor can pay and still be certain of a yield rate of (1) 5%, (2) 7%, convertible semiannually. (Answers: (1) $1121.88, (2) $979.19)

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