a. (Bond valuation)Calculate the value of a bond that matures in 15 years and has a $1,000 par value. The annual coupon interest rate is 15 percent and the market's required yield to maturity on a comparable-risk bond is 16 percent.
The value of the bond is $_____ (Round to the nearest cent.)
b. The market price is $1,200 for a 20-year bond ($1,000 par value) that pays 9 percent annual interest, but makes interest payments on a semiannual basis (4.5 percent semiannually). What is the bond's yield to maturity?
The bond's yield to maturity is _____ %.? (Round to two decimal places.)