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# Please answer Part A-D and included a short explanation of how you arrived at your answer for each part.

A) You have just purchased a 17-year, \$1,000 par value bond. The annual coupon rate on this bond is 10.9 percent paid each 6 months. If you expected to earn the market rate of 14.8 as return on this bond, how much did you pay for it?\

B) JRJ Corporation recently issued 10-year bonds at a price of \$1,000. These bonds pay \$88 in interest each six months. Their price has remained stable since they were issued, i.e., they still sell for \$1,000. Due to additional financing needs, the firm wishes to issue new bonds that would have a maturity of 16 years, a par value of \$1,000, and pay \$68 in interest every six months. If both bonds have the same yield, how many new bonds must JRJ issue to raise \$2,000,000 cash?(round your answer)

C) Trickle Corporation's 21 percent coupon rate, semiannual payment, \$1,000 par value bonds which mature in 24 years. The bonds currently sell for \$1,230.51 in the market. What is the bond Yield-to-Maturity (YTM) ?

D) A \$1,000 par value bond sells for \$1,216. It matures in 20 years, has a 48 percent coupon, pays interest semiannually, and can be called in 5 years at a price of \$1195. What is the bond's Yield -to-Call?

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