Question
1. An 7.9% coupon, 17-year annual bond is priced at $931. What is the current yield for this bond? (Show your answer to 4 decimals.
1. An 7.9% coupon, 17-year annual bond is priced at $931. What is the current yield for this bond? (Show your answer to 4 decimals. For example 7.895% is shown as 0.0790)
2. What is the price of a $1,000 par value semi-annual bond with 16 years to maturity and a coupon rate of 10.6% and a yield-to-maturity of 9.8%? (Show your answer to nearest cent with no comma. For example $1,378.565 is entered as 1378.57)
3. What is the price of a $1,000 par 17 year, annual bond with a 9.5% coupon rate and a yield to maturity of 9.1%? (Show your answer to nearest cent with no comma. For example $1,378.565 is entered as 1378.57)
4. You bought a 20-year, 9.2% semi-annual coupon bond today and the current market rate of return is 10%. The bond is callable in 6 years with a $1,057 call premium. What price did you pay for your bond? (Show your answer to nearest cent with no comma. For example $1,378.565 is entered as 1378.57)
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