1. Renfro Rentals has issued bonds that have a 12% coupon rate, payable semiannually. The bonds...

1. Renfro Rentals has issued bonds that have a 12% coupon rate, payable semiannually. The bonds mature in 6 years, have a face value of $1,000 and a yield to maturity of 7.5%. What is the price of the bonds? Round your answers to the nearest cent.

2. Heath Foods’ bonds have 8 years remaining to maturity. The bonds have a face value of $1,000 and a yield to maturity of 10%. They pay interest annually and have 9% coupon rate. What is their current yield? Round your answers to two decimal place.

3. Jackson corporation’s bonds have 5 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest is 10%. The bonds have a yield to maturity of 5%. What is the current market price of these bonds?Round your answers to the nearest cent.

Expert Solution

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

Cell reference -

jeff jeffy answered 2 days ago

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