1. A bond with a face value of $1000 and 15 years remaining until maturity, pays a coupon rate of 5% compounded semiannually. What yield (compounded semiannually) to maturity is earned by an investor who purchases this bond for $965?

2.

Calculate the purchase price of the $1000 face value of the bond. (Assume that bond interest is paid semiannually, that the bond was originally issued at its face value, that the bond is redeemed for its face value at maturity and that the market rate of return is compounded semiannually.)

Issue Date	Maturity Date	Purchase Date	Coupon Rate	Market Rate
March 15, 2002	March 15, 2027	October 5, 2008	5.5%	6.0%

MATCH the inputs on the left with the corresponding value on the right to calculate the PV of the face value of the bond.

Question 23 options:

1234567	N
1234567	P/Y
1234567	PMT
1234567	I/Y
1234567	C/Y
1234567	FV

1.	0
2.	37
3.	1000
4.	27.50
5.	30
6.	6
7.	2

3.

Calculate the purchase price of the $1000 face value of the bond. (Assume that bond interest is paid semiannually, that the bond was originally issued at its face value, that the bond is redeemed for its face value at maturity and that the market rate of return is compounded semiannually.)

Issue Date	Maturity Date	Purchase Date	Coupon Rate	Market Rate
March 15, 2002	March 15, 2027	October 5, 2008	5.5%	6.0%

MATCH the inputs on the left with the corresponding value on the right to calculate the FV of the bond price preceeding the purchase date. (Final step)

Question 24 options:

1234567	Sep 15/08 - Mar 15/09
1234567	I/Y
1234567	PV
1234567	PMT
1234567	Sep 15 - Oct 6/2008
1234567	N

1.	0
2.	0.110497
3.	944.58
4.	181
5.	20
6.	6
7.	2