A bond of Telink Corporation pays ​$120 in annual​ interest, with a ​$1,000 par value. The bonds mature in 15 years. The​ market's required yield to maturity on a​ comparable-risk bond is 8 percent.   a.  Calculate the value of the bond. b.  How does the value change if the​ market's required yield to maturity on a​ comparable-risk bond​ (i) increases to 14 percent or​ (ii) decreases to 4 ​percent? c.  Interpret your findings in parts a

(Related to Checkpoint 9.2 and Checkpoint 9.3) (Bond valuation) The 8-year $1,000 par bonds of Vail Inc pay 14 percent interest. The market's required yield to maturity on a comparable-risk bond is 10 percent. The current market price for the bond is $1,110. a. Determine the yield to maturity. b. What is the value of the bonds to you given the yield to maturity on a comparable-risk bond? c. Should you purchase the bond at the current market price? COLLE a. What is your yield to maturity on the Vail bonds given the current market price of the bonds? % (Round to two decimal places.)

You are considering an investment in 30-year bonds issued by Moore Corporation. The bonds have no special covenants. The Wall Street Journal reports that 1-year T-bills are currently earning 1.50 percent. Your broker has determined the following information about economic activity and Moore Corporation bonds: Real risk-free rate = 0.50% Default risk premium = 1.40% Liquidity risk premium = 1.00% Maturity risk premium = 2.00% a. What is the inflation premium? b. What is the fair interest rate on Moore Corporation 30-year bonds? Note: Round your percentage answers to 2 decimal places (ie., 0.1234 should be entered as 12.34). Expected inflation premium Fair interest rate

(Bond valuation relationships) Stanley, Inc. issues 15-year $1,000 bonds that pay $90 annually. The market price for the bonds is $1,182. The market's required yield to maturity on a comparable-risk bond is 7 percent. a. What is the value of the bond to you? b. What happens to the value if the market's required yield to maturity on a comparable-risk bond (i) increases to 11 percent or (ii) decreases to 5 percent? c. Under which of the circumstances in part b should you purchase the bond? a. What is the value of the bond if the market's required yield to maturity on a comparable-risk bond is 7 percent? (Round to the nearest cent.) $

(Related to Checkpoint 9.2 and Checkpoint 9.3) (Bond valuation) Fingen's 14-year, $1,000 par value bonds pay 13 percent interest annually. The market price of the bonds is $1,080 and the market's required yield to maturity on a comparable-risk bond is 10 percent. a. Compute the bond's yield to maturity. b. Determine the value of the bond to you, given your required rate of return. c. Should you purchase the bond? a. What is your yield to maturity on the Fingen bonds given the market price of the bonds? % (Round to two decimal places.) G

The 7-year $1,000 par bonds of Vail Inc. pay 8 percent interest. The market’s required yield to maturity on a comparable-risk bond is 5 percent. The current market price for the bond is $1,080. A. Determine the yield to maturity. B. What is the value of the bonds to you given the yield to maturity on a comparable-risk bond? C. Should you purchase the bond at the current market price ? A. What is your yield to maturity on the Vail bonds given the current market price of the bonds? Round to two decimal places

(Related to Checkpoint 9.2 and Checkpoint​ 9.3)  ​(Bond valuation)  The  15​-year ​$1,000 par bonds of Vail Inc. pay 9 percent interest. The​ market's required yield to maturity on a​ comparable-risk bond is 6 percent. The current market price for the bond is  $1,100. a.  Determine the yield to maturity. b.  What is the value of the bonds to you given the yield to maturity on a​ comparable-risk    bond? c.  Should you purchase the bond at the current market​ price? ---------------------------------------------------------------------------------------------------------------------------------------- a. What is your yield to maturity on the Vail bonds given the current market price of the​ bonds?  ​%  ​ (Round to two decimal​ places.)

Related to Checkpoint 9.2 and Checkpoint​ 9.3)  ​(Bond valuation)  ​Fingen's 16​-year,1000 ​$ par value bonds pay 13  percent interest annually.  The market price of the bonds is ​$1070 and the​ market's required yield to maturity on a​ comparable-risk bond is 14 percent. a.  Compute the​ bond's yield to maturity. b.  Determine the value of the bond to​ you, given your required rate of return. c.  Should you purchase the​ bond?   a.  What is your yield to maturity on the Fingen bonds given the market price of the​ bonds?  ​% ​(Round to two decimal​ places.)

(Related to Checkpoint 9.2) (Yield to maturity) The Saleemi Corporation's $1,000 bonds pay 9 percent interest annually and have 15 years until maturity. You can purchase the bond for $1,125. a. What is the yield to maturity on this bond? b. Should you purchase the bond if the yield to maturity on a comparable-risk bond is 6 percent? a. The yield to maturity on the Saleemi bonds is %. (Round to two decimal places.)

the 15-year $1,000 par bonds of Vail Inc. pay 15 percent interest. The market's required yield to maturity on a comparable - risk bond is 18 percent. The current market price for the bond is $910. a. determine the yield to maturity b. what is the value of the bonds to you given the yield to maturity on a comparable - risk bond? c. should you purchase the bond at the current market price?