The textbook questions -

1. A japanese company has a bond outstanding that sells for 91.53 percent of its 100000 par value. The bond has a coupon rate of 3.4 percent paid annually and matures in 16 years. What is the yield to maturity of this bond?

2. Essary Enterprises has bonds on the market making annual payments, with eight years to maturity, a par value of $1000, selling at $948. At this price, the bonds yield 5.9%. What must the coupon rate be at on the bonds?

3. Squeekers co. issued 15-year bonds a year ago at a coupon rate of 4.1 percent. The bonds make semiannual payments and have a par value of $1000. If the ytm on these bonds is 4.5 percent, what is the current bond price?

4. Valuing Bonds - Union Local School District has a bond outstanding with a coupon rate of 3.7 percent paid semiannually and 16 years to maturity. The yield to maturity on this bond is 3.9 percent, and the bond has a par value of $5,000. What is the price of the bond?

5. If Treasury bills are currently paying 5.1 percent and the inflation rate is 2.2 percent, what is the approximate real rate of interest? The exact real rate?