Question
1. A company has 8 percent coupon bonds on the market with 10 years left to maturity. Coupons are paid semi-annually. If the bond currently
1.A company has 8 percent coupon bonds on the market with 10 years left to maturity. Coupons are paid semi-annually. If the bond currently sells for $1,075, what is its yield to maturity?
2.A company just issued 20-year bonds at a coupon rate of 6.5%. Coupons are semi-annually paid. If YTM on these bonds is 5.3%, what is the current bond value?
3.Smiley Industrial Goods has bonds on the market making annual payments, with 13 years to maturity, and selling for $1,095. At this price, the bonds yield 6.4 percent. What must the coupon rate be on these bonds?
19.A company has 7 percent coupon bonds on the market with 10 years left to maturity. Coupons are paid annually. If the bond currently sells for $1,050, what is its yield to maturity?
13.A bond dealer sells at the _____ price and buys at the _____ price.
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