1. Given an interest rate of 6.0 percent per year, what is the current value of a perpetual stream of $36,000 (annual payment) that begins 5 years from now?   2. Baruch co. has 8% coupon bonds on the market that have 10 years left to maturity. The bonds will make annual payments. If the YTM on these bonds is 6%, what is the current bond price? Assume the face value of the bond is $1,000.

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Q: what is the YTM?

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A: Hi there! Thanks for the question. Post has multiple questions. As per company guidelines expert can…

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A: Given:

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A: Computation:

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Q: What's the yield to maturity?

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Q: annual coupon rate

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A: Bond value is the present value of the future payments. Future payments include coupon and face…