Question $8$

$14$ pts

As with most bonds, consider a bond with a face value of $$1,000.$ The bond's maturity is $24$ years, the coupon rate is $11\%$ paid annually, and the discount rate is $5\%.$

What should be the estimated value of this bond in one year?

Enter your answer in terms of dollars, rounded to the nearest cent, and without the dollar sign $(\text{'}$$$\text{'}).$ So$,$ for example, if your answer is $$546\mathrm{.}3456,$ then enter $546\mathrm{.}35$

Question $9$

$14$ pts

You own a bond with the following features: face value of $$1000,$ coupon rate of $6\%($semiannual compounding$),$ and $15$ years to maturity. The bond has a current price of $$1,200.$ The bond is callable after nine years with the call price of $$1100.$ What is the yield to call if the bond is called at nine years $($state as an APR$)?$

Enter your answer as a percentage, without the $\text{'}\%\text{'}$ sign, and rounded to two decimals. For example, if your answer is $0\mathrm{.}031416,$ which is equivalent to $3\mathrm{.}1416\%,$ just enter $3\mathrm{.}14$