Business Finance Homework Help

Madsen Motors’s bonds have 18 years remaining to maturity. Interest is paid annually; they have a $1,000 par value; the coupon interest rate is 8.5%; and the yield to maturity is 13%. What is the bond’s current market price? Round your answer to the nearest cent. $_____

A bond has a $1,000 par value, 8 years to maturity, and a 6% annual coupon and sells for $930.

What is its yield to maturity (YTM)? Round your answer to two decimal places._____ %

Assume that the yield to maturity remains constant for the next 5 years. What will the price be 5 years from today? Do not round intermediate calculations. Round your answer to the nearest cent.$_____