1. The semiannual, 8-year bonds of Soprano Music are selling at par and have a yield to maturity of 8.65%. What is the amount of each coupon payment if the face value of the bonds is $1,000?
2. James Hotels Group (JHG) acquired a piece of land from an equity partner. The CEO believes that they can sell the land to a restaurant company in 8 years for a price of $ 50,000. Assuming that JHG’s required rate of return is 9% per year, how much is the property worth in today’s dollars? Assume annual compounding.
3. Define investment? what is the overall purpose for investing?