The Logos Corporation is planning on issuing bonds that pay no interest but can be converted into $1,000 at maturity, 7 years from their purchase. To price these bonds competitively with other bonds of equal risk, it is determined that they should yield 9 percent, compounded annually. At what price should the Logos Corporation sell these bonds?

Assume the market price of a 5-year bond for Margaret Inc. is $900, and it has a par value of $1,000. The bond has an annual interest rate of 6 percent that is paid semi-annually. What is the yield to maturity of the bond?

You own a 20-year, $1,000 par value bond paying 7% interest annually, The market price of the bond is $875, and your required rate of return is 10%. a. Compute the bond’s expected rate of return b. Determine the value of the bond to you, given your required rate of return. c. Should you sell the bond or continue to own it?