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1 . ABC has issued a $ 1 0 0 0 par bond with 2 5 years to maturity, 7 % coupon rate, and semi

1. ABC has issued a $1000 par bond with 25 years to maturity, 7% coupon rate, and semi-annual payments. Calculate the present value if the bond if the YTM is 7%.
2. How would the answer to #1 change if the YTM is 9%?
3. How would the answer to #1 change if the YTM is 5%?
4. What bond relationship are Problems 1-3 discussing?
5. ABC issued 12-year bonds at a coupon rate of 8% with semi-annual payments. If the bond currently sells for $1050 of par value, what is the YTM? What is the current yield?
6. ABC issued 12-year bonds 2 years ago at a coupon rate of 8% with semi-annual payments. If the bond currently sells for 105% of par value, what is the YTM? What is the current yield?
7. A bond has a quoted price of $1,080.42. It has a face value of $1000, a semi-annual coupon of $30, and a maturity of five years. What is the yield to maturity? What is the current yield?
8. A bond has a quoted price of 90.52% of par value. It has a face value of $1000, a semi-annual coupon of $30, and a maturity of five years. What is the yield to maturity? What is the current yield?
9. ABC issued 15-year bonds at a coupon rate of 3% with semi-annual payments. If the bond currently sells for 112.5 percent of par value, what is the YTM? What is the current yield?
1. ABC's bonds have a 5.5% coupon and pay interest semi-annually. The bonds are currently selling for $1,150. The bonds mature in 20 years. The bonds can be called in 8 year for $1,100.
o What is the yield to maturity?
o What is the yield to call?
o What is the current yield?
2. ABC has $1,000 face value bonds outstanding. These bonds pay interest semi-annually, mature in 10 years, and have a 7.5 percent coupon. The current price is quoted at 99.59 percent of par value. What is the yield to maturity? What is the current yield?
3. Refer to #1 above. Suppose the bonds are callable in 5 years at 105 percent of par value, what is the yield-to-call?
4. ABC's bonds have a 9.5 percent coupon and pay interest semi-annually. Currently, the bonds are quoted at 106.315 percent of par value. The bonds mature in 12 years. What is the yield to maturity? What is the current yield?
5. Refer to #3 above. Suppose the bonds are callable in 5 years at 110 percent of par value, what is the yield-to-call?
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