Question: The most important is #3 but please answer all 1) A 7% semiannual coupon bond matures in 5 years. The bond has a face value
The most important is #3 but please answer all
1) A 7% semiannual coupon bond matures in 5 years. The bond has a face value of $1,000 and a current yield of 7.6326%. What are the bond's price and YTM? (Hint: Refer to Footnote 6 for the definition of the current yield and to Table 7.1) Do not round intermediate calculations. Round your answer for the bond's price to the nearest cent and for YTM to two decimal places.
Bonds price: $
YTM: %
2) You are considering a 20-year, $1,000 par value bond. Its coupon rate is 10%, and interest is paid semiannually. If you require an "effective" annual interest rate (not a nominal rate) of 9.2025%, how much should you be willing to pay for the bond? Do not round intermediate calculations. Round your answer to the nearest cent.
$
3) Madsen Motors's bonds have 21 years remaining to maturity. Interest is paid annually, they have a $1,000 par value, the coupon interest rate is 10%, and the yield to maturity is 12%. What is the bond's current market price? Round your answer to the nearest cent.
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