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  3. 1) a 100-year corporate bond has a coupon rate of

1) A 100-year corporate bond has a coupon rate of 12% with monthly payments. If...

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Accounting

1) A 100-year corporate bond has a coupon rate of 12% with monthly payments. If interest rates drop to 4% on similar bonds, then what is the value of the bond in the marketplace? 2) A 30-year annual bond is offered at 12%. After that the buyer of the bond sells the bond to someone else, but in between interest rates rose to 12.5%. Why is the first buyer of the bond upset with what the second buyer of bond is willing to pay? 3) A 10-year corporate bond has a coupon rate of 12% with annual payments. If the current value of the bond in the marketplace is $900, then what is the Yield-to-Maturity (YTM)? 4) A 100-year corporate bond has a coupon rate of 12% with semi-annual payments. If the current value of the bond in the marketplace is $400, then what is the Yield-to-Maturity (YTM)?

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