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Question Correction: $CDEFG=$31914 1. Calculate the yield to maturity for a corporate bond issued...

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Question Correction: $CDEFG=$31914

1. Calculate the yield to maturity for a corporate bond issued by ACI Limited with the price of $45,678, where the bond has a maturity of 25 years, a face value of $CDEFG, and the 9.52% annual coupon. Assume that coupon payments are made annually at the end of each year. (Marks: 7.5) a. Should the interest rates increase to 14.45%, how many years does the bond take to mature? b. If the interest rate decreases to 12.76%, what should be the annual coupon payment? 2. A bond issued by Walton has 15 years to maturity with a face value of $CDEFG. The market's required yield to maturity for a similarly rated debt was 11.58% per annum. The coupon rate is 14.79%. Walton pays interest to bondholders on a semi-annual basis. Calculate the price of the bond. (Marks: 7.5) a. In the following month, due to an unexpected economic downturn, the required yield to maturity for a similarly rated debt decreased to 9.97%. Calculate the current price of the bond. b. Same as requirement "a" above, except that the maturity increase to 19 years, calculate the price of the bond

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