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A. Pumpkin Inc has a bond outstanding that makes interest payments of $37 every six...

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Finance

A. Pumpkin Inc has a bond outstanding that makes interest payments of $37 every six months. The bond is a US Corporate coupon bond so has a Par of $1000 that will be paid at maturity. If the bond has 27 years to maturity (so twice as many six month periods) and a required rate of 5% per year (so half of this per six months), what is the value of the bond today?

B. Crayola Corp has an outstanding bond with a coupon rate of 4.7% per year which matures in 2041. If you require a rate of 4.2% per year on this bond, what is the value of the Crayola bond? (Of course the bond is par value $1000 and pays semi-annual coupon payments.) Assume today is 2021 so 20 years or 40 six month periods.

C.A long term FedEx bond that pays a coupon of 5.03% per year with a maturity of 2039. If the current price of the bonds is expressed as $99.64 (this is the % of par of 1000), what is the yield to maturity of the bonds? NOTE: the answer is approximate so your answer may be slightly off but still correct. (Assume year is 2021 so 18 years or 36 six month periods.) Express your answer as a decimal (5.83% is .0583).

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