1. Interpreting Bond Vields of Is the yield to maturity on a bond the same thing as the required return? Is YTM the same thing as the coupon rate! Suppose today a 10 percent coupon bond sells at par. Two years from now. the required return on the same bond is 8 percent. What is the coupon rate on the bond then! The YTM? 2. Interpreting Boud Viels L02] Suppose you buy a 7 percent coupon, 20 year bond today when it's first issued. If interest rates suddenly rise to 15 percent, what happens to the value of your bondWhy? 3. Valuing Bends L02 Even though most corporate bonds in the United States make coupon payments semiannually bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of 1.000 27 years to maturity, and a coupon rate of 3.6 percent paid annually. If the yield to maturity is 33 percent, what is the current price of the bond in euros? Bond Yilds L02) A Japanese company has a bond outstanding that sells for 96.318 percent of its Y100.000 par value. The bond has a coupon rate of 4 percent paid annually and matures in to years. What is the yield to maturity of this bond! Coupon Rutes 402) Nikita Enterprises has bonds on the market making animal payments, with leit years to maturity, a par x value of $1.000, and selling for $962. At this price, the boods yield percent. What must the coupon rate be on the boods? 6 Bond PreO2] Westco Cointed $year bonds a year ago at a coupon rate of 5.4 percent. The bonds make semina payments and have a par value of $1.000. If the YTM on these bonds is 45 percent, what is the current price of the bond in dollar 7 Rond Vields (L02) Ashburn Corp. ined 25 year bonds two years apo at a coupon rate of 5.6 percent. The bonds make semiannual payment. If these bonds currently sell for 97 percent of par value what is the YTM Coupon Rates 21 Diman Corporation has bonds on the market with 14.5 years to maturity, a YTM of 5.3 percent, a par value of $1.000, and a current price of $987. The bonds make semiannual payments. What must the coupon rate be on these bonds! 9. Zero Coupon Bonds 02] You find a zero coupon bond with a par value of $10,000 and 24 years to maturity. If the yield to maturity on this bond is 4.2 percent. What is the dollar price of the bond? Assamesemiannual compounding periods. Valuing Bonds 9L02] Yan Yan Corp. has a $2,000 par value bond outstanding with a coupon rate of 4.7 percent paid semiannually and 13 years to maturity. The yield to maturity of the bond is 5.05 percent. What is the dollar price of the bond? 8. 10 1. 2. Interpreting Bond Yields of Is the yield to maturity on a bond the same thing as the required return? Is YTM the same thing as the coupon rate? Suppose today a 10 percent coupon bond sells at par. Two years from now, the required return on the same bond is 8 percent. What is the coupon rate on the bond then? The YTM? Interpreting Bond Yields L02] Suppose you buy a 7 percent coupon. 20-year bond today when it's first issted. If interest rates suddenly rise to 15 percent, what happens to the value of your bond? Why? 3. Valuing Bonds L02] Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of 1.000. 27 years to maturity, and a coupon rate of 3.6 percent paid annually. If the yield to maturity is 3.2 percent, what is the current price of the bond in euros? Bond Yields LO2] A Japanese company has a bond outstanding that sells for 96.318 percent of its #100.000 par value. The bond has a coupon rate of 3.4 percent paid annually and matures in 16 years. What is the yield to maturity of this bond? Coupon Rates (L02] Nikita Enterprises las bonds on the market making annual payments, with eight years to maturity, a par x value of $1,000, and selling for S962. At this price, the bonds yield 5.1 percent. What must the coupon rate be on the bonds? Bond Prices 02] Westco Co. issued 15-year bonds a year ago at a coupon rate of 5.4 percent. The bonds make semiannual payments and have a par value of $1.000. If the YTM on these bonds is 4.5 percent, what is the current price of the bond in dollars? 7. Bond Yields LO2] Ashburn Corp, issued 25 year bonds two years ago at a coupon rate of 5.6 percent. The bonds make semiannual payments. If these bonds currently sell for 97 percent of par value, what is the YTM? Coupon Rates (L02] Draiman Corporation has bonds on the market with 14.5 years to maturity, a YTM of 5.3 percent, a par value of $1,000, and a current price of $987. The bonds make semiannual payments. What must the coupon rate be on these bonds? Zero Coupon Bonds LL02] You find a zero coupon bond with a par value of $10,000 and 24 years to maturity. If the yield to maturity on this bond is 4.2 percent, what is the dollar price of the bond? Assume semiannual compounding periods. Valuing Bonds L02] Yan Yan Corp. has a $2.000 par value bond outstanding with a coupon rate of 4.7 percent paid semiannually and 13 years to maturity. The yield to maturity of the bond is 5.05 percent. What is the dollar price of the bond? 6. 8. 9. 10. 1. Interpreting Bond Vields of Is the yield to maturity on a bond the same thing as the required return? Is YTM the same thing as the coupon rate! Suppose today a 10 percent coupon bond sells at par. Two years from now. the required return on the same bond is 8 percent. What is the coupon rate on the bond then! The YTM? 2. Interpreting Boud Viels L02] Suppose you buy a 7 percent coupon, 20 year bond today when it's first issued. If interest rates suddenly rise to 15 percent, what happens to the value of your bondWhy? 3. Valuing Bends L02 Even though most corporate bonds in the United States make coupon payments semiannually bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of 1.000 27 years to maturity, and a coupon rate of 3.6 percent paid annually. If the yield to maturity is 33 percent, what is the current price of the bond in euros? Bond Yilds L02) A Japanese company has a bond outstanding that sells for 96.318 percent of its Y100.000 par value. The bond has a coupon rate of 4 percent paid annually and matures in to years. What is the yield to maturity of this bond! Coupon Rutes 402) Nikita Enterprises has bonds on the market making animal payments, with leit years to maturity, a par x value of $1.000, and selling for $962. At this price, the boods yield percent. What must the coupon rate be on the boods? 6 Bond PreO2] Westco Cointed $year bonds a year ago at a coupon rate of 5.4 percent. The bonds make semina payments and have a par value of $1.000. If the YTM on these bonds is 45 percent, what is the current price of the bond in dollar 7 Rond Vields (L02) Ashburn Corp. ined 25 year bonds two years apo at a coupon rate of 5.6 percent. The bonds make semiannual payment. If these bonds currently sell for 97 percent of par value what is the YTM Coupon Rates 21 Diman Corporation has bonds on the market with 14.5 years to maturity, a YTM of 5.3 percent, a par value of $1.000, and a current price of $987. The bonds make semiannual payments. What must the coupon rate be on these bonds! 9. Zero Coupon Bonds 02] You find a zero coupon bond with a par value of $10,000 and 24 years to maturity. If the yield to maturity on this bond is 4.2 percent. What is the dollar price of the bond? Assamesemiannual compounding periods. Valuing Bonds 9L02] Yan Yan Corp. has a $2,000 par value bond outstanding with a coupon rate of 4.7 percent paid semiannually and 13 years to maturity. The yield to maturity of the bond is 5.05 percent. What is the dollar price of the bond? 8. 10 1. 2. Interpreting Bond Yields of Is the yield to maturity on a bond the same thing as the required return? Is YTM the same thing as the coupon rate? Suppose today a 10 percent coupon bond sells at par. Two years from now, the required return on the same bond is 8 percent. What is the coupon rate on the bond then? The YTM? Interpreting Bond Yields L02] Suppose you buy a 7 percent coupon. 20-year bond today when it's first issted. If interest rates suddenly rise to 15 percent, what happens to the value of your bond? Why? 3. Valuing Bonds L02] Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of 1.000. 27 years to maturity, and a coupon rate of 3.6 percent paid annually. If the yield to maturity is 3.2 percent, what is the current price of the bond in euros? Bond Yields LO2] A Japanese company has a bond outstanding that sells for 96.318 percent of its #100.000 par value. The bond has a coupon rate of 3.4 percent paid annually and matures in 16 years. What is the yield to maturity of this bond? Coupon Rates (L02] Nikita Enterprises las bonds on the market making annual payments, with eight years to maturity, a par x value of $1,000, and selling for S962. At this price, the bonds yield 5.1 percent. What must the coupon rate be on the bonds? Bond Prices 02] Westco Co. issued 15-year bonds a year ago at a coupon rate of 5.4 percent. The bonds make semiannual payments and have a par value of $1.000. If the YTM on these bonds is 4.5 percent, what is the current price of the bond in dollars? 7. Bond Yields LO2] Ashburn Corp, issued 25 year bonds two years ago at a coupon rate of 5.6 percent. The bonds make semiannual payments. If these bonds currently sell for 97 percent of par value, what is the YTM? Coupon Rates (L02] Draiman Corporation has bonds on the market with 14.5 years to maturity, a YTM of 5.3 percent, a par value of $1,000, and a current price of $987. The bonds make semiannual payments. What must the coupon rate be on these bonds? Zero Coupon Bonds LL02] You find a zero coupon bond with a par value of $10,000 and 24 years to maturity. If the yield to maturity on this bond is 4.2 percent, what is the dollar price of the bond? Assume semiannual compounding periods. Valuing Bonds L02] Yan Yan Corp. has a $2.000 par value bond outstanding with a coupon rate of 4.7 percent paid semiannually and 13 years to maturity. The yield to maturity of the bond is 5.05 percent. What is the dollar price of the bond? 6. 8. 9. 10