whats the solution to problem 7?

he chapter have in both cases, the issuers L the issues here? Why would a company gre o sell "equity ih disguise" ds [ L01 ] conne BondIs YTM the same thing as the coupon rate? Suppose today a Questions 1-17) Is the yield to maturity on a bond the same thing sells at par. Two years from now, the required return on the FINAN the required return? I n bond what is the coupon rate on the bond then? The YTM ent ists ILO21 Suppose you buy a 7 percent coupon, 20-yea adt issud, i inee rates sudenly rise t to the a1 Even though most corporate bonds in the United States BASIC Interpreting Bond Yields v when it's first ng issued. If interest rates alue of your bond? Why? suddenly ya German company issues a bond with nually. bonds issued elsewhere often have annual coupon valuing coupon ments. Su a par value of 1,000, maturity, and a coupon rate of 5.8 percent t, what is the current price of the bond? paid annually. If the yield to 24.7 percent, W Bond aurtLO 21 A Japanese company has a bond outstanding that sells for Yields o its 100.000 par value. The bond has a coupon rate of 3.4 percent maturity is 4.7 53 periliy and matures in 16 years. What is the yield to maturity of this bond? LO2] Essary Enterprises has bonds on the market making anmal with eight years to maturnty, a par value of $1,000, and selling for $948. At ce, the bonds yield 5.9 percent. What must the coupon rate be on the bonds? [LO2] Sqeekers Co. issued 15-year bonds a year ago at a coupon rate Coupon Bond Prices of 4.1 percent. The bonds make semiannual payments and have a par value of $1,000. bonds YTM on these bonds is 4.5 percent, what is the current bond price? , Bond Yields [LO2] Heginbotham Corp. issued 20-year bonds two years ago at a coupon rate of 5.3 percent. The bonds make semiannual payments. If these bonds curently sell for 105 percent of par value, what is the YTM? Coupon Rates [LO2] DMA Corporation has bonds on the market with 14.5 years percent, a par value of $1,000, and a current price of $965. The bonds make semiannual payments, What must the coupon rate be on these bonds? 1 of 5.3 Zero Coupon Bonds [L02] You find a zero coupon bond with a par 10000 and 17 years to maturity. If the yield to maturity on this bond is 4.9 percent, aluing Bonds [LO2] Yan Yan Corp. has a $2,000 par value bond outstanding with oupon rate of 4.9 percent paid semiannually and 13 years to maturity, The yield to utunt of the bond is 3.8 percent. What is the price of the bond? hat is the price of the bond? Assume semiannual compounding periods