1. Dan is considering the purchase of Super Technology, Inc. bonds that were issued 3 years ago. When the bonds were originally sold they had a 26-year maturity and a 14.06 percent coupon interest rate, paid annually. The bond is currently selling for $1,366. Par value of the bond is $1,000. What is the yield to maturity on the bonds if you purchased the bond today?

Round the answers to two decimal places in percentage form. (Write the percentage sign in the "units" box).

You should use Excel or financial calculator.

Your Answer:

2.

Marco Chip, Inc. just issued zero-coupon bonds with a par value of $1,000. The bond has a maturity of 25 years and a yield to maturity of 8.38 percent, compounded semi-annually. What is the current price of the bond?

Round the answer to two decimal places.

3.

Pet Food Company bonds pay an annual coupon rate of 13.67 percent. Coupon payments are paid semiannually. Bonds have 28 years to maturity and par value of $1,000. Compute the value of Pet Food Company bonds if the market interest rate on this type of bond is 10.44 percent.

Round the answer to two decimal places.

Your Answer:

4. You paid $1171 for a corproate bond that has a 10.81 percent coupon rate. What is the bond's current yield?

Round the answer to two decimal places in percentage form