Question
1. ABC, Inc. has issued a 21-year bond with a par value of $1,000, coupon rate of 7.42%. The yield to maturity (YTM) is 3.03%.
1. ABC, Inc. has issued a 21-year bond with a par value of $1,000, coupon rate of 7.42%. The yield to maturity (YTM) is 3.03%. Assume semi-annual payments. What is today's price of this bond?Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box.
2.A 5% semiannual coupon bond maturing in 5 years with a par value of $100 is trading at $95. Calculate the yield to maturity.
3.Suppose you paid $1,027.58 for a corporate bond that has a 4.13% coupon rate. What is the current yield? Assume that the par value of the bond is $1,000.Note: Convert your answer to percentage and round off to two decimal points. Do not enter % in the answer box.
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