(a) Compute the market price (Vb) of the following bonds: (6)$1,000 par value, 10-yr maturity, and 8% coupon rate that is paid semi-annually? Assume the yield to maturity of 12%.$1,000 par value, 10-yr maturity, and 6% coupon rate that is paid semi-annually? Assume the yield to maturity of 12%.$1,000 par value, 10-yr maturity, and 8% coupon rate that is paid semi-annually? Assume the yield to maturity of 6%.(b) Based on your answers comment on the relationship (what happens to one variable when the other goes up/down) of (a) price with yield to maturity and (b) price with coupon rate. (4)

Elliot Enterprises' bonds currently sell for $1,150; have an 11% coupon interest rate and a $1,000 par value, pay interest annually, and have18 years to maturity. (i) Calculate the bonds' current yield (ii) Calculate the bonds' yield to maturity (YTM). (iii) Compare the YTM calculated in part (ii) to the bonds' coupon interest rate and current yield calculated in part (i). Use a comparison of the bonds' current price and par value to explain these differences.

A. Compute the current price of each of the following bonds (assume $1,000 par value): a. 6 year, 6% quarterly bond; 12% market yield b. 20 year zero coupon bond; 6% market yield c. 10 year, 10% semiannual bond; 8% market yield

If 10-year T-bonds have a yield of 4.0%, 10-year corporate bonds yield 7.6%, the maturity risk premium on all 10-year bonds is 1.3%, and corporate bonds have a 0.23% liquidity premium versus a zero liquidity premium for T-bonds, what is the default risk premium on the corporate bond?  Round 2 decimal places

Determine the price of a $1.3 million bond issue under each of the following independent assumptions: 1. Maturity 10 years, interest paid annually, stated rate 8%, effective (market) rate 10%. 2. Maturity 10 years, interest paid semiannually, stated rate 8%, effective (market) rate 10%. 3. Maturity 10 years, interest paid semiannually, stated rate 10%, effective (market) rate 8%. 4. Maturity 20 years, interest paid semiannually, stated rate 10%, effective (market) rate 8%. 5. Maturity 20 years, interest paid semiannually, stated rate 10%, effective (market) rate 10%. Note: Use tables, Excel, or a financial calculator. (FV of S1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1.) Complete this question by entering your answers in the tabs below. Required 1 Required 3 Required 2 Required 4 Required 5 Maturity 10 years, interest paid annually, stated rate 8%, effective (market) rate 10%. Note: Round your answer to the nearest whole dollar. Price of bonds Required 2 > Next

Consider a 9-year, $1,000 par value, 12% annual-pay bond that is currently trading at a flat price of $888. The capital gains yield (CGY) is closest to   A.   0.7745%.   B.   0.4672%.   C.   0.3505%.   D.   0.0185%.

Sunnyfax Publishing pays out all its earnings and has a share price of $37.00. In order to expand, Sunnyfax Publishing decides to cut its dividend from $3.00 to $2.00 per share and reinvest the retained funds. Once the funds are reinvested, they are expected to grow at a rate of 14%. If the reinvestment does not affect Sunnyfax's equity cost of capital, what is the expected share price as a consequence of this decision? O$45.87 $40.14 $68.81 $57.34

Using the following information, determine the maturity risk premium on 10 year bonds: Rate % inflation 0.74 T-bill 5.00 10y T-Bond 6.00 10y AAA Corporate 6.37 10y AA Corporate 7.62

Given the following spot rates, calculate the value of a 3-year, 4% annual-coupon bond. Spot rates:   1-year: 1% 2-year: 3% 3-year: 9%     A. $880.38 B. $914.47 C. $961.28 D. $993.88

Suppose a seven-year, $1,000 bond with a(n) 10.19% coupon rate and semiannual coupons is trading with a yield to maturity of 8.81%. a. Is this bond currently trading at a discount, at par, or at a premuim? Explain. b. If the yield to maturity of the bond rises to 9.44% (APR with semiannual compounding), at what price will the bond trade?