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1. Kaiser Industries has bonds on the market making annual payments, with 10 years to maturity, a par value of $1,000, and a current price

1. Kaiser Industries has bonds on the market making annual payments, with 10 years to maturity, a par value of $1,000, and a current price of $1,025.8. At this price, the bonds yield 7.5 percent. What is the coupon rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

2. You are purchasing a 10-year, zerocoupon bond. The yield to maturity is 8.69 percent and the face value is $1,000. What is the current market price? Assume semiannual compounding. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

3. The outstanding bonds of Winter Tires Inc. provide a real rate of return of 3.2 percent. If the current rate of inflation is 2.1 percent, what is the actual nominal rate of return on these bonds?

4. The 7.5 percent bonds issued by Modern Kitchens pay interest semiannually, mature in eight years, and have a $1,000 face value. Currently, the bonds sell for $995. What is the yield to maturity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

5. Do-Well bonds have a face value of $1,000 and are currently quoted at 106.72. The bonds have coupon rate of 6.2 percent. What is the current yield on these bonds? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

6. The zero coupon bonds of JK Industries have a market price of $570.96, a face value of $1,000, and a yield to maturity of 9.8 percent. How many years is it until these bonds mature? Assume semiannual compounding.

7. Oil Wells offers 5.55 percent coupon bonds with semiannual payments and a yield to maturity of 4.94 percent. The bonds mature in seven years. What is the market price per bond if the face value is $1,000? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

8. A bond has a yield to maturity of 6.52 percent. If the inflation rate is 2.7 percent, what is the real rate of return on the bond?

9. World Travel has 7.4 percent, semiannual, coupon bonds outstanding with a current market price of $1,053.46, a par value of $1,000, and a yield to maturity of 6.72 percent. How many years is it until these bonds mature? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

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