1. Bronn borrowed $6,000 four years ago at 18%. He pays $9,000 in six years and he pays X today. How much is Bronn’s payment today? A. $6,528.51 B. $4,280.42 C. Answer is not listed or is not possible D. $1,719.58 E. $8,298.78
2. Lycan, Inc., has 5.1 percent coupon bonds on the market that have 7 years left to maturity. The bonds make annual payments and have a face value of $1,000. If the YTM on these bonds is 5.7 percent, what is the current bond price?
3. Emacs Co. issued 15-year, $1,000 face value bonds one year ago at a coupon rate of 8.2 percent. The bonds make semiannual payments. If the YTM on these bonds is 9.4 percent, what is the current bond price?