1. There are zero coupon bonds outstanding that have a YTM of 5.79 percent and mature in 22 years. The bonds have a par value of $10,000. If we assume semiannual compounding, what is the price of the bonds?
2. You purchase a bond with an invoice price of $1,005. The bond has a coupon rate of 5.36 percent, it makes semiannual payments, and there are 4 months to the next coupon payment. The par value is $1,000. What is the clean price of the bond?
3. By loosening its credit standards, the Henry company believes its daily NPV will increase by $9,000. Henry uses a 10% cost of capital for credit policy decisions. If the increased daily NPV contineus indefinitely, what is the aggregate (total) NPV of the decision to lessen the credit standards?