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1. A semi annual coupon bond with face value of $1000 has a coupon rate of 8% and matures in 12 years. The market-determined discount rate on this bond is 9%. What is the price of the bond? Round to the penny.

2. A semi annual coupon bond with coupon rate of 5% and face value of $1000 trades at $1050. It matures in 7 years. What is its yield to maturity (YTM)? Answer in percent and round to two decimal places.

3. A 5 year semi annual coupon bond with a face value of $1000 trades at $925. The market-determined discount rate is 6%. What is the coupon rate? Answer in percent and round to two decimal places.

4. A zero coupon bond with a face value of $1000 that matures in 20 years sells today for $600. What is the yield to maturity? (Use annual compounding.) Enter in percent to two decimal places.

5. What is the coupon rate of a bond with a face (maturity) value of $1000, a Price (PV) of $874.39, 8 years (16 periods) to maturity, and yield to maturity of 6%? (Note that the YTM of 6% is an annual rate, but coupon payments are made semi annually.

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M91535889

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