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Problem Walk-ThroughProblem Walk-ThroughProblem Walk-ThroughProblem Walk-ThroughProblem Walk-ThroughProblem Walk-ThroughProblem Walk-ThroughProblem Walk-ThroughProblem Walk-ThroughProblem Walk-ThroughProblem Walk-Through Problem 7-1 Bond valuation Callaghan Motors' bonds have 22 years remaining to maturity. Interest is paid annually, they have a $1,000 par value, the coupon interest rate is 6%, and the yield to maturity is 12%. What is the bond's current market price? Round your answer to the nearest cent. $ 3. Problem Walk-ThroughProblem Walk-ThroughProblem Walk-ThroughProblem Walk-ThroughProblem Walk-ThroughProblem Walk-ThroughProblem Walk-ThroughProblem Walk-ThroughProblem Walk-ThroughProblem Walk-ThroughProblem Walk-Through Problem 7-2 Yield to maturity and future price A bond has a $1,000 par value, 8 years to maturity, and a 7% annual coupon and sells for $980. a. What is its yield to maturity (YTM)? Round your answer to two decimal places. % b. Assume that the yield to maturity remains constant for the next 2 years. What will the price be 2 years from today? Round your answer to the nearest cent. $ 4. Problem Walk-ThroughProblem Walk-ThroughProblem Walk-ThroughProblem Walk-ThroughProblem Walk-ThroughProblem Walk-ThroughProblem Walk-ThroughProblem Walk-ThroughProblem Walk-ThroughProblem Walk-ThroughProblem Walk-Through Problem 7-3 Bond valuation Nungesser Corporation's outstanding bonds have a $1,000 par value, a 12% semiannual coupon, 19 years to maturity, and an 8% YTM. What is the bond's price? Round your answer to the nearest cent. $

Explanation / Answer

Answer:2

Bond Price=$60*PVIFA(12%,22)+$1000*PVIF(12%,22)

=458.676+82.6

=541.276

or 541

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