problems # 1, 6 and 16

Problems These problems are available in MyFinance Bond prices: For Problems I through 4, use the information in the following table. Coupon Years to Yield to Par Value Rate Maturity Maturity Price $1,000.00 8% 10 6% ? $1,000.00 6% 10 8% ? $5,000.00 9% 20 7% 7 $5,000.00 12% 30 5% 7 1. Price the bonds from the table with annual coupon payments. 2. Price the bonds from the table with semiannual coupon payments. 3. Price the bonds from the table with quarterly coupon payments. 4. Price the bonds from the table with monthly coupon payments. Yield to maturity: For Problems 5 through 8, use the information in the follow- ing table. Par Value Coupon Rate Years to Maturity Yield to Maturity Price $1,000.00 8% 10 ? $1,000.00 $1,000.00 6% 10 7 $ 850.00 $5,000.00 9% 20 ? $5,400.00 $5,000.00 12% 30 ? $4,300.00 5. What is the yield of the above bonds if interest (coupon) is paid annually? 6. What is the yield of the above bonds if interest (coupon) is paid semiannually? 7 TALL 16. Callable bond. Corso Books has just sold a callable bond. It is a thirty-year semiannual bond with a coupon rate of 6%. Investors, however, can call the bond starting at the end of ten years. If the yield to call on this bond is 8% and the call requires Corso Books to pay one year of additional interest at the call (two coupon payments), what is the bond price if priced with the assumption that the call will be on the first available call date