Question
1. What is the price of a $1,000 face value bond with ten years to maturity if investors require a 7% return and the bond
1. What is the price of a $1,000 face value bond with ten years to maturity if investors require a 7% return and the bond has a coupon rate of 10%?
2. What is the yield to maturity (total yield) on a $1,000 bond selling for 113.42 if the bond has a coupon rate of 9% and matures in ten years?
3.What is the price of a $1,000 face value bond with a 10% semi-annual coupon rate if the bond matures in 5 years and requires a return of 12%?
4. If a $1,000 bond pays no coupon interest, matures in 8 years and is priced to yield 6.6%, what is the price of the bond?
5.A $1,000 bond has no maturity pays a 4% coupon rate and requires a 6.25% return. What is the price of the bond?
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