1. Calculate the value of a bond that matures in 16 years and has a $$1,000 par value. The annual coupon interest rate is14 percent and the? market's required yield to maturity on a? comparable-risk bond is 15 percent.
2. The market price is ?$1,200 for a 9 ?-year bond ?($1,000 par? value) that pays 8 percent annual? interest, but makes interest payments on a semiannual basis ?(4 percent? semiannually). What is the? bond's yield to? maturity?
3. Abner? Corporation's bonds mature in 17 years and pay 11 percent interest annually. If you purchase the bonds for ?$850?, what is your yield to? maturity?