Problem 7-14

Hoste Corp. issued a $1000 face value 20-year bond seven years ago with a 12% coupon rate. The bond is currently selling for $1536.31. What is its yield to maturity (YTM)? Assume bond coupons are paid semiannually. Round the answer to the nearest whole percentage.

Problem 7-1

A bond that pays 12% interest compounded annually on a $1,000 face value will mature in 24 years. The interest rate is now 14%. What should the bonds market price be? Do not round intermediate calculations. Round PVFA and PVF values in intermediate calculations to four decimal places. Round your answer to the nearest cent.

Problem 7-2

A $1,000 par value, 25-year bond is five years old. It pays interest once a year at an annually compounded coupon rate of 12%. The market is returning 8% on comparable bonds. What is the bonds market price? Do not round intermediate calculations. Round PVFA and PVF values in intermediate calculations to four decimal places. Round your answer to the nearest cent.