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# 1. Suppose a corporations bonds have 8 years remaining to

### Resolved Question:

1. Suppose a corporation’s bonds have 8 years remaining to maturity. In addition, suppose the bonds have a \$1000 face value, and the coupon interest rate is 7%. The bonds have a yield to maturity of 10%. Compute the market price of the bonds if interest is paid annually.

2. Assume that you are considering the purchase of a 15-year bond with an annual coupon rate of 9.5%. The bond has face value of \$1,000 and makes semiannual interest payments. If you require an 11.0% nominal yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond?

3. Consider some bonds with one annual coupon payment of 7.25%. The bonds have a par value of \$1,000, a current price of \$1,125, and they will mature in 13 years. What is the yield to maturity on these bonds?

4. What is the yield to maturity for a zero coupon bond that matures in 14 years if the bond is selling for \$530.00? Assume the maturity value of the bond to be \$1,000.

5. A bond carries a 9 percent coupon, pays interest semiannually, and has 10 years to maturity. What is the bond's yield to maturity if the bond is selling for \$937.75 (rounded to the nearest whole percent)?
Submitted: 2 years ago.
Expert:  linda_us replied 2 years ago.

Welcome and Thanks for requesting me.

Customer: replied 2 years ago.

My deadline is Friday October 25th

Expert:  linda_us replied 2 years ago.
I am working on it and will post the solution in a few minutes.
Thanks
Customer: replied 2 years ago.

Ok thanks. Do u provide the sets to find the solution to the problems?

Expert:  linda_us replied 2 years ago.

I always provide full and original solutions. If you need help in future you can request me again!!
Pleasee note you need to click on the smiley icon to rate me..Good/excellent in order for me to get paid for my work.
Thanks
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linda_us, Master's Degree
Satisfied Customers: 7290
Experience: A tutor for Business, Finance, Accounts and other related topics.

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