1. Bob bought a bond for $4500 on March 1, 2002 with a coupon rate of 5.8% and a maturity date of September 1, 2022. He sells in the bond on April 4, 2012 for market value when the prevailing market rate is 6.3% comp. semiannually, how much did he sell the bond for?
2. Acura has a nine-million dollar bond with a 5.7% coupon rate that they have to pay off in six years. They decide to set up a sinking fund to help set aside money. If the sinking fund can earn 5% compounded semi-annually, What semi-annual payments do they need to make to reach their goal? What is the annual cost of debt? What is the book value of the debt in 4 years?
3. Samsung is aiming to save up 2.8 million dollars in four years to help fund research and testing for a new Apple product. If they make semi-annual payments of $315,000 with an interest rate of 5.1% comp. Semiannually, will they have enough? If not, how much more will they need to pay?