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- Need help urgently Only typed answer needed Handwritten answer not allow On May 1, Emerson Fast bought 10 Manitoba Polar bonds with a coupon rate of 7.875%. The purchase price was 101.375, and the commission was $8 per bond. Manitoba Polar bonds pay interest on April 1 and October 1. a. What is the current yield of the bond? b. What is the total purchase price of the bonds? c. If Emerson sold the bonds on August 1 for 109.50, what are the proceeds from the sale?a. Tüpraş bonds have 5 years until maturity. The bonds have a 12.5% coupon, and they sell at $1100 apiece. Calculate their yield to maturity.Mr. Prudent has purchased a discount bond, that matures in 7 years with a payout of exactly $14,440. Assume that Mr. Prudent holds this bond for 3 years and then sells it in a secondary market. If the interest rate is 9.3%, then what price does he sell it for?
- 18. Suppose your city is building a new park, and issues bonds to raise the money to build it. You obtain a $1,000 bond that pays 5% simple interest annually that matures in 5 years. How much interest will you earn?Assume a bond with a remaining maturity of 3 yearsa. If the face value is $10,000 and coupon payments are $500 per year. What would the price of this bond be if the yield to maturity is 6%?b. Given your answer in (a), is the coupon rate greater, equal, or less than the yield to maturity? Why?2. An investment will provide $10,000 at the end of 3 years. The investment receives interest at 12% compounded annually. a. What is the present value of the investment?
- 8. Consider a 10 year 6.50% annual coupon bond whose duration is 7.50 years when required rate of return (yield to maturity) is 6.50%. Prove that this bond is immunized if you hold it for 7.50 years.Problem 3 An investor bought a discount bond with face value of $1,000 at the price of $870. The bond matures in three years. What is the rate of return? Problem 6 You lend $1,000 today. The borrower promises to return $1,500 in 8 years from now. What is the yield to maturity of this loan?1. Consider a coupon bond that has a $1,000 par value and a coupon rate of 9%. The bond is currently selling for $1,150 and has 9 years to maturity. What is the bond's yield to maturity?
- Showing your working out, compute the price of all four bonds: Face Value Maturity (years) Yield Frequency of yield Coupon rate Frequency of coupon Bond 1 £1000 3 3% semi-annual 8% semi-annual Bond 2 £1000 4 3% quarterly 4% semi-annual Bond 3 £100 2 2% monthly 3% quarterly Bond 4 £100 5 3% monthly 4% semi-annualGive typing answer with explanation and conclusion Gustav Co. is planning to issue new 30-year bonds. The current plan is to make the bonds non-callable, but this may be changed. If the bonds are made callable after 5 years at a 5% call premium, how would this affect their required rate of return? Question 6 options: There is no reason to expect a change in the required rate of return. The required rate of return would increase because the bond would then be?What should be the price of a 8year zero-coupon bond with a face value of $1000 where zero-coupond bonds yield 6% interest?