Question
1.) A 10 year semiannual is selling at par and has ayield to maturity of 7.50 percent. What is the amount ofeach coupon payment if
1.) A 10 year semiannual is selling at par and has ayield to maturity of 7.50 percent. What is the amount ofeach coupon payment if the face value of the bonds is$1,000? DO NOT USE DOLLAR SIGNS OR COMMAS IN YOUR ANSWER.ROUND ANSWER TO THE NEAREST CENT (2 Decimals). LIST THE NUMBER AS APOSITIVE NUMBER.
2.)A company offers 5.77 percent coupon bonds withsemiannual payments and a yield to maturity of 6.49 percent. Thebonds mature in 12 years. What is the market price per bond if theface value is $1,000? DO NOT USE DOLLAR SIGNS OR COMMAS INYOUR ANSWER. ROUND ANSWER TO THE NEAREST CENT (2 Decimals). LISTTHE NUMBER AS A POSITIVE NUMBER.
3.)
A $1,000 par value bond sells for $1,020. It matures in 5years and has an 5% coupon, paid semiannually. What is thebond’s yield to maturity (YTM)? ENTER YOUR ANSWER AS A PERCENTAGEWITH ONE DECIMAL PLACE (e.g., 12.1) AND NOT AS A DECIMAL (e.g.,0.121). ROUND TO THE NEAREST TENTH OF A PERCENT. DO NOT USE THEPERCENT SIGN (%) IN YOUR ANSWER.
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