# Finance Homework

Anonymous
account_balance_wallet \$15

### Question Description

Need help with finance homework. There're 10 questions in the attached file. Please show work & provide clear explanation as to how to get the answers.

mickeygabz
School: Rice University

See attached. Question 8 is incomplete. Send it so I can update

Q1 Sunland Corp is issuing a 10-year bond with a coupon rate of 10 percent. The interest rate for
similar bonds is currently 9 percent. Assuming annual payments, what is the value of the
bond? (Round answer to 2 decimal places, e.g. 15.25.)

C = coupon payment = \$100.00 (Par Value * Coupon Rate)
n = number of years = 10
i = market rate, or required yield = 9.000% = 0.09
k = number of coupon payments in 1 year = 1
P = value at maturity, or par value = 1000
1

1β(

π ππ
(1+ )
π
π
π

πΆ

Market value = *
π

)
π

+

π ππ
π

(1+ )

1
0.09 10β1
(1+
)
1
0.09
1

1β(

Market value =

100
1

*

)
1000

+

(1+

0.09 10β1
)
1

= \$1064.18

Q2 Sheridan, Inc., has issued a three-year bond that pays a coupon rate of 8.5 percent. Coupon
payments are made semiannually. Given the market rate of interest of 4.2 percent, what is the
market value of the bond? (Round answer to 2 decimal places, e.g. 15.25.)

C = coupon payment = \$85.00 (Par Value * Coupon Rate)
n = number of years = 3
i = market rate, or ...

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Anonymous
Top quality work from this guy! I'll be back!

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