Question
1. a corperate bond matures in 3 years. the bond has an 8% semiannual coupon and the par value is 1000. the bond is callable
1. a corperate bond matures in 3 years. the bond has an 8% semiannual coupon and the par value is 1000. the bond is callable in 2 years at a call price of $1050. the price of the bond today is $1075. what is the bonds yield to call?
2. midea cooperation bonds mature in 3 years and have a yield to maturity of 8.5%. the par value is 1000. the bond has a 10% coupon rate and pay interest on semiannual baisis. what is the capital gain yield (loss) on this bond?
3. a ten year bond is currently selling for $1037 and has a yield to maturity of 6.23%, what is the coupon rate for this bond if the face value is 1000?
4. a semiannual bond has a face value of 1000, a yield to maturity of 7.2% and a coupon rate of 7.5% the bond matures in 10 years from today. this bond has a current yield of?
5. a company just paid an annual dividend of $1.2 a share. the dividend will increase by 3% for the next 3 years and then increase by 2% annual thereafter. what is the present value of this stock at a discount rate of 9%?
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