Question #$3$

Note: Clearly show all calculations in order to have credit

Arnot International's bonds have a current market price of $$1,100.$ The bonds have an $12\%$ annual coupon payment and $15$ years left until maturity. What is the bond's yield to maturity?

$N$

$\frac{\text{I}}{Y}$

PV

PMT

FV

Suppose Hillard Manufacturing Inc. initially issued $10-$year maturity coupon bonds when the market interest rate was $13\%.$ At what price will the bonds sell?

$N$

I$/$Y

PV

PMT

FV