ued by FIFO Ltd that has a face value of $1000 and a coupon rate of 5% p.a.. The coupons are paid semi-annually and the bond has 10 years to maturity and 6.5% p.a. yield. If Ali has $9,000 to invest, calculate the price of the bon

Heather Smith is considering a bond investment in Locklear Airlines. The $1,000 par value bonds have a quoted annual interest rate of 9 percent and the interest is paid semiannually. The yield to maturity on the bonds is 12 percent annual interest. There are 9 years to maturity. Compute the price of the bonds based on semiannual analysis. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Bond price

The Chief Financial Officer of a company would like to raise money for new equipment by floating a new bond issue.  The CFO would like to receive $1000 (full face value) for each of the bonds she sells.  After collecting the below bond market data, and if the bonds carry a rating of A and have a term of 10 years, what coupon rate should be included in the bond contract?   Assume an annual coupon payment.      Security& Rating          Maturity Face     Coupon     Price  Treasury    1 $    1,000    0.00% $     965.00  Treasury    3 $    1,000    1.90% $     939.06  Treasury    5 $    1,000    4.30% $     932.42  Treasury   10 $    1,000    6.80% $   1,007.12  Treasury   15 $    1,000    6.60% $     908.25  CorpA  A   5  $    1,000    8.10% $     990.00  CorpB  BB  10 $    1,000    7.90% $     859.88  CorpC  AA  15 $    1,000    7.00% $     660.00