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Corporate Finance – Homework 4

IÃ¢â‚¬â„¢m studying and need help with a Accounting question to help me learn.

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Homework WK 4
Question 1
5 Points
What is the price of the bond given the information below? The bond makes annual interest
payments. (Do not round intermediate calculations, round answer to two decimals, i.e. 32.16)
Coupon Rate: 7.9%
YTM: 10.3%
Maturity (years): 7
Par value: \$1,000
Current Price: \$ _______________
Question 2
5 Points
What is the YTM of the bond given the information below. The bond makes annual interest payments.
(Do not round intermediate calculations, round answer to two decimals, i.e. 32.16)
Coupon Rate: 5.5%
Maturity (years): 25
Current Price: \$1,063.61
Par value: \$1,000.00
YTM: Blank 1%
Question 3
5 Points
What is the coupon rate of the bond given the information below? The bond makes annual interest
payments. (Do not round intermediate calculations, round answer to two decimals, i.e. 32.16)
YTM: 10.0%
Maturity (years): 7
Current Price: \$1,145.24
Par value: \$1,000.00
Coupon Rate: Blank 1%
Question 4
5 Points
What is the price of the bond given the information below? The bond makes semiannual interest
payments. (Do not round intermediate calculations, round answer to two decimals, i.e. 32.16)
Coupon Rate: 6.7%
YTM: 10.2%
Maturity (years): 30
Par value: \$1,000
Current Price: \$______________
Question 5
5 Points
What is the YTM of the bond given the information below. The bond makes semiannual interest
payments. (Do not round intermediate calculations, round answer to two decimals, i.e. 32.16)
Coupon Rate: 7.9%
Maturity (years): 20
Current Price: \$1,234.58
Par value: \$1,000.00
YTM: Blank 1%
Question 6
5 Points
What is the copon rate of the bond given the information below. The bond makes semiannual interest
payments. (Do not round intermediate calculations, round answer to two decimals, i.e. 32.16)
YTM:7.5%
Maturity (years): 7
Current Price: \$938.63
Par value: \$1,000.00
Coupon Rate: %
Question 7
5 Points
What is the price of the bond given the information below? The bond makes semiannual interest
payments. (Do not round intermediate calculations, round answer to two decimals, i.e. 32.16)
Coupon Rate: 6.0%
YTM: 10.6%
Maturity (years): 22
Par value: \$2,000
Current Price: \$ ______________
Question 8
5 Points
What is the price of the municipal bond given the information below? The bond makes semiannual
interest payments. (Do not round intermediate calculations, round answer to two decimals, i.e. 32.16)
Coupon Rate: 7.3%
YTM: 7.7%
Maturity (years): 20
Par value: \$5,000
Current Price: \$ ______________
Textbook: Essentials of Corporate Finance
Author: Stephen Ross; Randolph Westerfield
ISBN: 978-1260565560 (Kindle edition available at Amazon)
Edition: 10e
Publisher: McGraw-Hill