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1. GDebi, Inc. plans to issue 6.5 percent coupon bonds, with annual coupon frequency, 18 years to maturity and $1000 face value. If the prevailing market yield on bonds of similar riskiness and maturity is 7.8 percent, what would be the market price of GDebi's bonds?

2. HexChat, Inc. has issued 19 year bonds 5 years ago. The bonds pay semiannual coupons, with a coupon rate of 6.6 percent, and $1000 face value. If your required return on this investment is 5.7 percent APR, how much would you be willing to pay for this bond?

Financial Management, Finance

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