Question
1.- Hobby Companys bonds have 8 years remaining to maturity. They have a $ 1,000 par value. The coupon interest rate is 8 %. What
1.- Hobby Companys bonds have 8 years remaining to maturity. They have a $ 1,000 par value. The coupon interest rate is 8 %. What is the most you should pay for the bond if you require a 9% return?
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2.- Cashew Corporation has a five-year bond whose yield to maturity is 6.5%. The bond has no coupon payments. What is the price of this zero coupon bond? (Assume semi-annual compounding)
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3.- A company has outstanding bonds that were issued 20 years ago with a $ 1,000 par value, a 6% semiannual coupon. What is the bonds price if there are 7 years to maturity, and the yield to maturity is 5%?
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4.- A bond was issued with a $1,000 par value, 20- year maturity and 7 % annual coupon. The bond currently sells at a price of $1,494.93. What is the yield to maturity of the bond?
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5.- A firms bonds have a maturity of 10 years with a $1,000 face value, an 8 % semiannual coupon and currently sell at a price of $1,100. What is yield to maturity?
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6.- A bond was issued with a 15 year maturity. The bond pays $25 every six months. What is the most you should pay for the bond if the yield to maturity is 3%?
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Finance At 40 Financial Intelligence
Authors: MOIRA O'NEILL Moira O'Neill
1st Edition
1408101114, 978-1408101117
