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 1.30 percent. Your broker has determined the following information about economic activity and Moore Corporation bonds: Real risk-free rate=0.70% ces Default risk premium = 1.20% Liquidity risk premium = 0.60% Maturity risk premium=1.80% a. What is the inflation premium? (Round your answer to 2 decimal places.) Expected IP b. What is the fair interest rate on Moore Corporation 30-year bonds? (Round your answer to 2 decimal places.) Fair interest rate

An insurance company is analyzing the following three bonds, each with five years to maturity, annual interest payments, and is using duration as its measure of interest rate risk. What is the duration of each of the three bonds? (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)) a. $10,000 par value, coupon rate=9.7%, r 0.17 b. $10,000 par value, coupon rate 11.7%, r= 0.17 c. $10,000 par value, coupon rate = 13.7%, p=0.17 Duration of the bond years

(Related to Checkpoint 9.2 and Checkpoint 9.3) (Bond valuation relationships) The 14-year, $1,000 par value bonds of Waco Industries pay 6 percent interest annually. The market price of the bond is $1,105, and the market's required yield to maturity on a comparable-risk bond is 3 percent. a. Compute the bond's yield to maturity. b. Determine the value of the bond to you given the market's required yield to maturity on a comparable-risk bond. c. Should you purchase the bond? a. What is your yield to maturity on the Waco 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 13 percent interest. The market's required yield to maturity on a comparable-risk bond is 11 percent. The current market price for the bond is $1,060. 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.) C

(Related to Checkpoint 9.2 and Checkpoint 9.3) (Bond valuation relationships) The 12-year, $1,000 par value bonds of Waco Industries pay 8 percent interest annually. The market price of the bond is $925, and the market's required yield to maturity on a comparable-risk bond is 11 percent. Compute the bond's yield to maturity. Determine the value of the bond to you given the market's required yield to maturity on a comparable-risk bond. Should you purchase the bond?

(Related to Checkpoint 9.2) (Yield to maturity) The Saleemi Corporation's $1,000 bonds pay 12 percent interest annually and have 13 years until maturity. You can purchase the bond for $1,085. 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 12 percent? a. The yield to maturity on the Saleemi bonds is %. (Round to two decimal places.)

(Related to Checkpoint 9.2 and Checkpoint​ 9.3)  ​(Bond valuation)  The 11​-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 11 percent. The current market price for the bond is $1,100.   a.  Determine the yield to maturity. b.  What is the value of the bonds to you given the yield to maturity on a​ comparable-risk bond? c.  Should you purchase the bond at the current market​ price?       Question content area bottom Part 1 a. What is your yield to maturity on the Vail bonds given the current market price of the​ bonds?   enter your response here​% ​ (Round to two decimal​ places.) Part 2 b.  What should be the value of the Vail bonds given the yield to maturity on a comparable risk​ bond?   ​$enter your response here   ​(Round to the nearest​ cent.) Part 3 c.  You ▼   should should not purchase the Vail bonds at the current market price because they are currently ▼   underpriced…