Question
1. Staind, Inc., has 10 percent coupon bonds on the market that have 25 years left to maturity. The bonds make semiannual payments. If the
1. Staind, Inc., has 10 percent coupon bonds on the market that have 25 years left to maturity. The bonds make semiannualpayments. If the YTM on these bonds is 5 percent, what is the current bond price? Answer the question with 2 decimals (e.g. 1030.12)
2. Ackerman Co. has 7 percent coupon bonds on the market with 8 years left to maturity. The bonds make annual payments. If the bond currently sells for $1063.25, what is its YTM? Answer with 4 decimals (e.g. 0.0123)
3. Kiss the Sky Enterprises has bonds on the market making semiannual payments, with 21 years to maturity, and selling for $1066. At this price, the bonds yield 6.5 percent. What must the coupon rate be on the bonds? Enter the answer with 4 decimals (e.g. 0.0123)
4. Grohl Co. issued 18 year bonds 4 years ago at a coupon rate of 6 percent. The bonds make semiannual payments. If the YTM on these bonds is 8 percent, what is the current bond price? Enter the answer with 2 decimals (e.g. 950.45)
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