1. Essell Enterprises’ bonds currently sell for $1,165. They have 15 years left to maturity, an annual coupon of $95, and a par value of $1,000. What is their yield to maturity?
2. The Morrissey Company’s bonds mature in 7 years, have a part value of $1,000, and make an annual coupon payment of $70. The market interest rate for the bonds is 8.5%. What is the bond’s price?
3. D.J. Masson Inc. issue bonds that mature in 10 years. They have a part value of $1,000 and an annual coupon of 5.5%. If the current market interest rate is 7%, at what price should the bonds sell?