1. If Tall Paul can earn 6.5% on comparable bonds, what value would he place on bonds issued

by the Bieg Company that have an 5.25% coupon rate, semi-annual payments, $1,000 face

value, and 10 years to maturity? (Round Your Answer to 2 Decimal Places: X.XX)

2. The McDonnell Company has outstanding bonds with a coupon rate of 6.75% and semiannual payments. The bonds are redeemable at their face value on December 30, 2032. If

Weege can earn 5% on comparable investments and settle the transaction on March 24, 2015,

how much should he be willing to pay per $100 of face value for the bond? (Round Your

Answer to 2 Decimal Places: X.XX)

3. A 10-year, 12% semiannual coupon bond with a par value of $1000 may be called in four

years at a call price of $1,060. The bond sells for $1,100. Assume that the bond has just been

issued.

What is the bonds yield to maturity? (Round Your Answer as a Percentage with 2 Decimal

Places, For Example: X.XX%)

4. A 10-year, 12% semiannual coupon bond with a par value of $1000 may be called in four

years at a call price of $1,060. The bond sells for $1,100. Assume that the bond has just been

issued.

What is the bonds current yield? (Round Your Answer as a Percentage with 2 Decimal Places,

For Example: X.XX%)

5. A 10-year, 12% semiannual coupon bond with a par value of $1000 may be called in four

years at a call price of $1,060. The bond sells for $1,100. Assume that the bond has just been

issued.

What is the bonds capital gain or loss yield? (Round Your Answer as a Percentage with 2

Decimal Places, For Example: X.XX%)