ne via Canvas Question 17 1.5 pts Malko Enterprises' bonds currently sell for $1,020. They have...

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Answer 1

Answer #1

Q17)
	Current yield = coupoun amount / market price

		=$75/1020

		7.35%


18)	Bond price =C*[1-(1+YTM)^-n / YTM] + [P/(1+YTM)^n]

	Where,
	C= Coupon amount
	YTM = Yield To maturity
	n = Number of periods
	P= Par value

	$910=85 * [1 - (1 + YTM)^-15 / YTM] + [1000 / (1 + YTM ) ^15]

	YTM =	9.66%

19)
	Computation Of Bond Price

	a	Annual Interest Amount	$ 65
		($1000*6.5%)
	b	PV Annuity Factor for (8 Years,6.1%)	6.18529143
	c	Present Value Of Annual Interest (a*b)	$ 402
	d	Redemption Value	1000
	e	PV Factor Of (8 Years,6.1%)	0.62269722
	g	Present Value Of Redemption Amount (d*e)	$ 622.70
	f	Intrinsic Value ( Price ) Of The Bond (c+g)	$ 1,025

Answer 2

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