1) What is the price of a bond that matures in 13 years and 7 months, has an interest rate of 3 1/5%, when current market yields are also about 3 1/5%?
2) A broker has called you and offers you 4 bonds with a coupon rate of -0%-, they mature in 3 years and 12 months, and he wants 68 3/9 for them. You think interest rates in the economy are going to fall. Would you buy these bonds? Explain.
3) Calculate the price of 6 bonds that have a nominal rate of 3 3/8% mature in 14 years, when current market yields are approximately 5%.
4) Calculate the Yield to Maturity of 10 bonds that have a stated rate of 6 1/3%, mature in 5 1/2 years, and are currently priced at 102.244.