Question: Problem 1 . Tanjiro Corp has a bond outstanding with a coupon rate of 5 . 7 percent and annual payments. The bond currently sells

Problem 1. Tanjiro Corp has a bond outstanding with a coupon rate of 5.7 percent and annual payments. The bond currently sells for $1,600.25, matures in 12 years, and has a par value of $1,800.
C. What is the YTM if the coupons are semiannual?
Referring to the initial example (with annual coupons), what price would you actually pay if, when you purchase the bond, there are still 2 months left until the next coupon payment?
Referring to Part C setup (semiannual coupons), what is the current yield of this bond?
Referring to the initial example (with annual coupons), what would be the selling price of the
bond if you were to sell it in 2 years?
Assume Inosuke Inc. has a $2,500 par value bond outstanding that pays 7% annual coupon and
matures in 10 years. Today it sells for $2,207.29. Which bond presents a better investment
Tanjiro or Inosuke (from the initial setup)? Hint: decide which measure of return is appropriate
and use it to compare the two bonds.

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