1. (Yield to maturity?) Assume the market price of a 11?-year bond for Margaret Inc. is $1,000?, and it has a par value of $$1,000. The bond has an annual interest rate of 7?% that is paid semiannually. What is the yield to maturity of the? bond? The yield to maturity of the bond is ?%. (Round to two decimal? places.)
2. (Bond valuation?) Flora? Co.'s bonds, maturing in 9 years, pay 5 percent interest on a $1,000 face value.? However, interest is paid semiannually. If your required rate of return is 13 percent, what is the value of the? bond? How would your answer change if the interest were paid? annually?
a. If the interest is paid? semiannually, the value of the bond is $?(Round to the nearest? cent.)