Assume that you are considering the purchase of a 20-year, noncallable bond with an annual coupon rate of 9.5%.  The bond has a face value of $1,000, and it makes semi-annual interest payments.  If you require an 8.4% yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond?  b)    Malka Enterprises’ bonds currently sell for $1,050.  They have a 6-year maturity, an annual coupon of $75, and a par value of $1,000.  What is their current yield ?

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