Consider the case of Badger Corp.: Badger Corp. has 9% annual coupon bonds that are callable and have 18 years left until maturity. The bonds have a par value of $1,000, and their current market price is $1,220.35. However, Badger Corp. may call the bonds in eight years at a call price of $1,060. What are the YTM and the yield to call (YTC) on Badger Corp.'s bonds? YTM YTC Value If interest rates are expected to remain constant, what is the best estimate of the remaining life left for Badger Corp.'s bonds? O 13 years 10 years 5 years O 8 years If Badger Corp. issued new bonds today, the coupon rate must be for the bonds have to be issued at par.

Bernard co. has 7% coupon bonds on the market that have 14 years left to maturity. The bonds will make annual payments. If the YTM on these bonds is 8%, what is the current bond price (in $ dollars)? (Assume the face value of the bond is $1,000) $

Dizzy Inc. wishes to issue new bonds but is uncertain how the market would set the yield to maturity. The bonds would be 20-year, 3.5% semi-annual coupon bonds with a $1,000 par value. Dizzy has determined that these bonds would sell for $887.45 each. Expressed as an annual percentage rate, what is yield to maturity for these bonds? 6.54% 9.54% 8.15% 7.35%

McCue Inc's bonds currently sell for $1,25O. They pay a $120 quarterly coupon, have a 15.5 semesters maturity, and a $1,000 par value, but they can be called in 5.25 years at $1,050. What is the difference between this bond's YTM and its YTC?

Verbrugge Company has a level-coupon bond outstanding that pays coupon interest of $120 per year and has 10 years to maturity. The face value of the bond is $1,000.  If the yield for similar bonds is currently 14%, what is the bond’s current market value? For the Verbrugge Company bond described in Problem 1, find the bond’s value if the yield for similar bonds decreases to 12%. For the Verbrugge Company bond described in Problem 1, find the bond’s value if the yield for similar bonds decreases to 9%. Suppose the Verbrugge bond paid interest semiannually. What is its value if the yield is 14%? A firm issues an annual bond today with a $1,000 face value, an 8% annual coupon interest rate, and 25-year maturity. An investor purchases the bond for $1,000.  What is the yield to maturity (YTM)? Suppose the investor bought the bond described in the previous problem for $900. What’s the YTM?

Radomski Corporation's bonds make an annual coupon interest payment of 7.35%.  The bonds have a par value of $1,000, a current price of $1,130, and mature in 12 years.  What is the yield to maturity on these bonds?    Morin Company's bonds mature in 8 years, have a par value of $1,000, and make an annual coupon interest payment of $65.  The market requires an interest rate of 8.2% on these bonds.  What is the bond's price?     A 25-year, $1,000 par value bond has an 8.5% annual payment coupon.  The bond currently sells for $925.  If the yield to maturity remains at its current rate, what will the price be 5 years from now?

Moerdyk Corporation's bonds have a 15-year maturity, a 7.25% semiannual coupon, and a par value of $1,000. Thegoing interest rate (rd) is 6.20%, based on semiannual compounding. What is the bond's price?

Show all your work. The bonds issued by XYZ CO. currently sell for $1,020. They have a 8-year maturity, an annual coupon of $75, and a par value of $1,000. What are their current yield and capital gains yield during the current year?