problem1. Martin Software has a 10.0 percent coupon bonds on the market with 19 years to maturity. The bonds make semi-annual payments and currently sell for 107.8 percent of par.
Current Yield = 9.27
Effective Annual Yield =
problem2. A Japanese company has a bond outstanding which sells for 85 percent of its 100,000 par value. The bond has a coupon rate of 4.40 percent paid yearly and matures in 15 years.
What is the yield to the maturity of this bond?
problem3. Backwater Corp. has 8 percent coupon bonds making annual payments with an YTM of 7.4 percent. The current yield on these bonds is 7.75 percent.
How many years do these bonds have left till they mature?
problem4. Panzer Corporation has bonds on the market with the 12.5 years to maturity, an YTM of 7.30 percent, and a current price of $1,057. The bonds make semi-annual payments.
What should the coupon rate be on these bonds?