Problem 1: Springfield Nuclear Energy Inc. bonds are currently trading at $1,449.44. the bonds have a face value of $1,000, a coupon rate of 10.5% with coupons paid annually, and they mature in 10 years. What is the yield to maturity of the bonds?

Problem 2: Consider an annual bond with a face value of $100, 10 years to maturity, and a price of $81. The coupon rate on the bond is 6%. If you can invest coupons at a rate of 4.55 per annum, then how much money do you have if you hold the bond to maturity?

Problem 3: What is the price of a 3 year, 7.5% coupon rate, $1,000 face value bond that pays interest quarterly if the yield to maturity on similar bonds is 11.6%?

Problem 4: What is the yield to maturity of a 9.2% semiannual coupon bond with a face value of $1,000 selling for $885.82 that matures in 9 years?

Problem 5: Wee Beastie Animal Farm bonds have 7 year to maturity and pay an annual coupon at the rate of 5.7%. The face value of the bonds is $1,000. The price of the bonds is $1,011.94 to yield 5.94%. What is the capital gain yield on the bonds?

A. -0.14%

B. -0.13%

C. +0.14%

D. +0.17%

E. -0.12%

Problem 6: A 11 year bond pays interest of $26.40 semiannually, has a face value of $1,000, and is selling for $743.72. What are its annual coupon rate and yield to maturity?

Problem 7: Acme Inc. just issued a bond with a $10,000 face value and a coupon rate of 7%. If the bond has a life of 30 years, pays semi-annual coupons, and the yield to maturity is 9%, what will the bond sell for?

Problem 8: You have just purchased a 15- year, 1,000 par value US Government bond for $909.20. The yield to maturity on the bond is 8.6%. What is the coupon rate?

A. 8.6%

B. 15.0%

C. 7.5%

D. 7.0%

E. 9.0%

Problem 9: The Federal Government 2 year coupon bond has a face value of $1,000 and pays annual coupons of $33. The next coupon is due in one year. Currently, the one and two - year spot rates on Federal Government zero coupon bonds are 4% and 4.5%. What is the correct price for the coupon bond at time zero (immediately)?

A. $976.17

B. $977.68

C. $1.023.49

D. $1,025.00

E. $1,000.00

Problem 10: A bond with an annual coupon of $100 originally sold at par for $1,000. The current yield to maturity on this bond is 9%. Assuming no change in risk, this bond would sell at a ______ in order to compensate_________________.

A. discount; the issuer for the higher cost of borrowing

B. premium; the seller for the above market coupon rate

C. discount; the seller for the above market coupon rate

D. discount; the purchaser for the above market coupon rate

E. premium; the purchaser for the above market coupon rate