1-P10-Assume you just paid$1 comma 226for a convertible bond that carries a(n)8.54%coupon and has15years to maturity.

1-P10-Assume you just paid ​$1 comma 226 for a convertible bond that carries​ a(n)  8.54 ​%  coupon and has 15 years to maturity. The bond can be converted into 24 shares of​ stock, which are now trading at​ $50 a share. Find the bond investment value of this​ issue, given that comparable nonconvertible bonds are currently selling to yield 10.85 ​%.

The bond investment value of this issue is ______$

2- Using annual​ compounding, find the​ yield-to-maturity for each of the following bonds.

a. ​A(n) 11 ​%, 24 ​-year bond priced at ​$922.16 .

b. ​A(n) 17​%, 11​-year bond priced at ​$1,163.58

.

c. ​A(n) 7.5 ​%, 19​-year bond priced at ​$618.41

.

Now assume that each of the above three bonds is callable as​ follows: Bond a is callable in 7 years at a call price of ​$1,085​; bond b is callable in 5years at ​$1,350 ​; and bond c is callable in 4 years at ​$1,030

.

Use annual compounding to find the​ yield-to-call for each bond.

3-A 25 ​-year, ​zero-coupon bond was recently being quoted at 17.719 ​% of par. Find the current yield and the promised yield of this​ issue, given that the bond has a par value of ​$1 000. ​Then, using semiannual​ compounding, determine how much an investor would have to pay for this bond if it were priced to yield 10.28 ​%. The current yield on this bond is __​%. ​ (Round to the nearest whole​ percent.)

The promised yield of this issue is ____​%. ​ (Round to two decimal​ places.)

Using semiannual​ compounding, the amount an investor would have to pay for this bond if it were priced to yield

5.14 % is ________$ ​(Round to the nearest​ cent.)

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