Redesigned Computers has 6.5 percent coupon bonds outstanding with a current market price of $832.

Grand Adventure Properties offers a 9.5 percent coupon bond with annual payments. The yield to maturity is 11.2 percent and the maturity date is 11 years from today. What is the market price of this bond if the face value is $1,000?    A.  $895.43 B.  $896.67 C.  $941.20 D.  $946.18 E.  $953.30

86.

Redesigned Computers has 6.5 percent coupon bonds outstanding with a current market price of $832. The yield to maturity is 16.28 percent and the face value is $1,000. Interest is paid semiannually. How many years is it until these bonds mature?    A.  2.10 years B.  4.19 years C.  7.41 years D.  9.16 years E.  18.32 years   It's easiest to solve this problem using a financial calculator. You can then use the calculator answer as the time period in the formula just to verify that your answer is correct.   The number of six-month periods is 4.19. The number of years is 2.10 years.

87.

Global Communications has a 7 percent, semiannual coupon bond outstanding with a current market price of $1,023.46. The bond has a par value of $1,000 and a yield to maturity of 6.72 percent. How many years is it until this bond matures?    A.  12.26 years B.  12.53 years C.  18.49 years D.  24.37 years E.  25.05 years   It's easiest to solve this problem using financial calculator. You can then use the calculator answer as the time period in the formula just to verify that your answer is correct.   The number of six-month periods is 25.052. The number of years is 12.53 years.