FINANCE QUESTIONS ON BONDS

1. What would be the annual payment of a $50,000 loan, payable in 8 years with an interest rate of 6.5%?

2. What should a bond sell for if the coupon rate is 5.2%, it matures in 6 years and it has a yield to maturity of 8%?

3. A 25 year bond is callable in 5 years.  It has a 4.2% coupon rate payable semi-annually and a call premium of two years' interest. It has yield to maturity of 6.5%.  What is the yield to call?

4. What is a bond's yield to maturity if the bond cost $1010, has a 6.25% coupon rate payable semi-annually and matures in 16 years?

5. What is the yield to call for a 10 year bond that is callable in 2 years, has a 5.1% coupon rate and a yield to maturity of 6.5%?  The bond's call premium is one year's interest.

6. What is the yield to maturity for a zero coupon bond that matures in 15 years and costs $375?

7. What is the yield to maturity on a 15 year bond that cost $922.50 and has a coupon rate of 4.8% payable semi-annually?