(Answered) Calculate the fair price for of the bonds

Management Studies

Problem: Star trek beyond had the highest box office receipts this past weekend. with this success, paramount pictures is already considering the best way to finance expert to understand fair prices for them. investors are willing to buy from paramount pictures with the following terms and prices. bond: A, B, C, D. Par value : $1,000, $1,000, $1,000, $1,000. time to maturity(years) 25, 30, 25, 30. coupon rate : 7%, 10.80%, 10.70%, 10%, yield to maturity : 6.20%, 13.40%, 8.10%, 10.40. compounding : annual, annual, semi annual,semi annual, investor offer price : $855.18, 1062.18, 1305.42, $1295.85.

Required:

Calculate the fair price for each of the bonds. for each bond, should paramount sell them for the price offered by the investors? Support your statements with examples.

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