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Financial Planning Problems 1. Bernie purchased 20 bonds with par values of \\( \\$ 1000...

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Financial Planning Problems 1. Bernie purchased 20 bonds with par values of \\( \\$ 1000 \\) each. The bonds carry a coupon rate of 9 percent, payable semi-annually. How much will Bernie receive at his first interest payment? 2. Two bonds have par values of \\( \\$ 1000 \\). Bond \\( A \\) is a 5 percent, 15 -year bond priced to yield 6 percent. Bond B is a 6.5 percent, 20 -year bond priced to yield 5.5 percent. Which of these has the lower price? (Assume annual compounding in both cases.) 3. A bond is priced in the market at \\( \\$ 1150 \\) and has a coupon of 8 percent. Calculate the bond's current yield. 4. Assume that an investor is looking at two bonds: Bond \\( \\mathrm{A} \\) is a \\( \\$ 100020 \\)-year, 9 percent bond that pays coupons semi-annually. The bond is priced to yield 10.5 percent, compounded semi-annually. Bond B is a \\( \\$ 1000 \\) 20-year, 8 percent bond that pays coupons annually. The bond is priced to yield 7.5 percent, compounded annually. Both bonds are callable after 5 years at a price of \\( \\$ 1050 \\). a. Which bond has the higher current yield? b. Which bond has the higher YTM? c. Which bond has the higher YTC

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