1. The MerryWeather Firm wants to raise $16 million to expand its business. To accomplish this, the firm plans to sell 20-year, $1,000 face value zero-coupon bonds. The bonds will be priced to yield 9.2 percent. What is the minimum number of bonds the firm must sell to raise the money it needs? Use annual compounding.
2. LibreOffice, Inc. wants to raise $10 million dollars in debt financing. It wants to offer a $1,000 face value, 5.7 percent coupon bond with annual payments and 13 years to maturity. The yield to maturity on similar bonds out in the marketplace is 9.5 percent. How many bonds must the firm issue in order to raise the desired amount of funding?
3. A $1000 face value bond has two years left to maturity, 6.8% coupon rate with annual coupons, and is currently trading at $908. What is the YTM on this bond?Enter answer in percents, accurate to 2 decimal places.