Answer as most as possible I want to understand it all 1. Union Local School District...

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Finance

Answer as most as possible I want to understand it all

1. Union Local School District has bonds outstanding with acoupon rate of 4.2 percent paid semiannually and 17 years tomaturity. The yield to maturity on these bonds is 3.5 percent andthe bonds have a par value of $5,000.

-What is the dollar price of each bond? (Do not roundintermediate calculations and round your answer to 2 decimalplaces, e.g., 32.16.)

2.  Fluss AB has 9.5 per cent coupon bonds makingannual payments with a YTM of 7.1 per cent. The current yield onthese bonds is 7.5 per cent. The par value of the bond is€1,000.
How many years do these bonds have left until they mature?

3.Laurel, Inc., and Hardy Corp. both have 7 percent coupon bondsoutstanding, with semiannual interest payments, and both are pricedat par value. The Laurel, Inc., bond has four years to maturity,whereas the Hardy Corp. bond has 15 years to maturity.

a. If interest rates suddenly rise by 2 percent, what is thepercentage change in the price of these bonds?

b.  If interest rates were to suddenly fall by 2percent instead, what would the percentage change in the price ofthese bonds be then?

4. Stand AG has bonds on the market with 17.5 years to maturity,a YTM of 6 per cent, and a current price of €930. The bonds makesemiannual payments. The par value of the bond is €1,000.

-What must the coupon rate be on these bonds?

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Answer to Question 1 Par Value 5000 Annual Coupon Rate 420 Semiannual Coupon Rate 210 Semiannual Coupon 210 5000 Semiannual Coupon 105 Time to    See Answer
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