Please answer all questions

1. A bond with 14 years to maturity and a coupon rate of 15% has a par or face value 19000. interest is paid annually. If you were required a return of 14% on this bond what is the price of the bond

- the value of the bond

2.

A. at what rate would the bond sell at a discount

b. if the bond is giving a par value is 1000 calculate the different values for the bonds given the required rate you pick in part A

3.

a. what is the dollar price of this bond?

b. what is the bonds current yield?

c. what is the bond selling at par, at discount, or at a premium

d. compare the bonds current yeilf cculated in part B to its ytm And explain why they differ

4.

a- determine what is the most Laura should pay for the access as it is classified as one low risk, to average risk and three high risk

b- suppose Laura is unable to access the risk of the asset, and wants to be certain she's making a good deal on the bias of your findings of part a what is the most she should pay

c - all else, being the same what effect does increasing risk on value of an asset

5.

a - response of similar risk our current earnings of rates of return of 12%. How much should a complex system Vons sell for today

b - describe the two possible reasons why the rate on similar risk bonds is below the coupon rate.

c- if the required return were at 15% instead of 12% what would the current value of complex system bond be?

8. The Salem company Bon currently sells for 1719.92, has a coupon interest rate of 18% an a 1000 par vaur pay intrest annaully, and has 14 years to maturity

a. calculate the yield to maturity on this bond.

b. explain the relationship that exist between the coupon, interest rate in the yield to maturity and the par value and market value of bond.

The value of the bond is 1 (Recund to the neareut certh.) Assume a 15-year Treasury bond has a coupon rate of 4.5%. a. Give examples of required rates of return that would make the bond sell at a discount, at a premium, and at par. b. If this bond's par value is $1,000, calculate the differing values for this bond given the required rates you choose in part a. a. At what rate would the bond sell at a discount? (Select the best answer below.) A. 2.7% B. 4.5% C. 7.4% yeld to maturity (YTM) of 8 oss. 4 . Civen this information, anawer the following questions. a. What was the dotar price of the bond? b. What is the bonds current yield? c. Is the bond oeling at par, at a discount, or at a cremin? Why? d. Compare the bonefe current yieid calculated in part b to iti YTM and explain why they differ. a. The dotser price of the bond is 1 (Round to the nearost cent) Asset valuation and risk. Personal Finance Problem Laura Drake wishes to estimate the value of an asset expected to provide cash inflows of $2.800 for each of the next 4 years and $12, 105 in 5 years. Her resoarch indicates that she must earn 5% on low-risk assets, 8% on average-risk assets, and 15% on high-risk assels: a. Determine what is the moet Laura should pay for the asset if it is ciassified as (1) low.risk, (2) averago-risk, and (3) high tisk. b. Suppose Laura is unabie to assess the risk of the asset and wants to be cortain she's making a good deal. On the basis of your thdingss in part a, what is the most she should pay? Why? e. Al else being the tarte, what effect does increasing risk have on the value of an asset? Explain in light of your findings in pait a. a. (1) The most Lnura should pay for the asset if it is classifed as low-risk is: (Round to the nearest cent.) Bnsic boed valuation. Conclex Systems has an cutstanding issue of 51.000-per-value bonde with a 15% covon interest rale. The issue poys interest annualy and has 12 yoas remaining fo its maturify dale. a. It bonds of similat risk are curecdy earning a raie of cotum of 12%, how much shoud the Complec Systems bond seil for today? b. Desorbe the wo pcasible reasons why the tate on simfarinak bende is below the coupon interat rate on the Complex Syaterns bond. (Raund to the nearest cont.) Veld to maturity. Tho Salom Comgany bond curmenty sells for $1,719.92, has a coupon interest rate of 18% and a 51000 par viue, pays interest annually, and has 14 yearsto matirity a. Calculate the yeid to maturity (YmM) on this bond. b. Explain the reistonship that exiets between the coupen interest rale and yield to maturity and the par value and trarket volus of a bond. a. The yied to maturty on this tond is 4. (Round to thee decimel places)