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Corporate Finance – Homework 4

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

Please respond properly each question, read carefully each question

I need the calculation with a response… short answers when needed

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

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