1.Valuing Bonds: Microhard has issued a bond with the following characteristics:
Par: $1,000
Time to maturity: 23 years
Coupon Rate: 7 percent
Semiannual payments
Calculate the price of this bond if the YTM is:
a. 7 percent
b. 9 percent
c. 5 percent
2. Bond Yields: Skolits Corp. issued 15-year bonds two years ago at a coupon rate of 5.1 percent. The bonds make semiannual payments. If these bonds currently sell for 105 percent of par value, what is the YTM?
3. Valuing Bonds: Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company has a bond outstanding with a par value of €1,000, 16 years to maturity, and a coupon rate of 4.7 percent paid annually. If the yield to maturity is 3.4 percent, what is the current price of the bond?