Determining the current market price of the bonds

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1. Fresh Water Inc sold an issue of 17-years $1,000 par value bonds to the public. The bonds have a 8.47 percent coupon rate and pay interest annually. The current market rate of interest on the Fresh Water, Inc bonds is 12.81 percent. What is the current market price of the bonds? Round the answer to two decimal places.

2. General Mills has a $1,000 par value, 11-years to maturity bonds outstanding with an annual coupon rate of 9.67 percent per year paid semiannually. Market interest rates o similar bonds are 10.86 percent. Calculate the bondAc€?cs price today. Round the answer to two decimal places.

3. Dan is considering the purchase of Supper Technology inc bonds that were issued 3 years ago. When the bonds were originally sold they had a 24-year maturity and a 6.19 percent coupon interest rate, paid annually. The bonds is currently selling for $882. Par value of the bonds is $1,000. What is the yield to maturity on the bonds if you purchase the bonds today? Round the answer to two decimal places.

4. A few years ago Spider web inc issued with a 11.79 percent annual coupon rate paid semiannually. The bonds have a par value of $1,000 a current price of $702 and will mature in 23 years. What would the annual yield to maturity be on the bonds if you purchase the bonds today?

Reference no: EM13969863

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Determining the current market price of the bonds : 1. Fresh Water Inc sold an issue of 17-years $1,000 par value bonds to the public. The bonds have a 8.47 percent coupon rate and pay interest annually. The current market rate of interest on the Fresh Water, Inc bonds is 12.81 percent. What is the..
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