Question
1. What is the Yield-to-Maturity of a 5.5% coupon bond with 22.5 years remaining until maturity, a par value of $1000, and a current price
1. What is the Yield-to-Maturity of a 5.5% coupon bond with 22.5 years remaining until maturity, a par value of $1000, and a current price of $938.70? The bond makes semi-annual coupon payments.
2. What is the current price of a $1000 par value bond if has 12.5 years until maturity, a YTM of 6.6%, and a coupon rate of 6% with semi-annual coupon payments?
3.The bonds of Lapeer Airlines, Inc., are currently trading on the market at $1,119.34. They have a par value of $1000, make semi-annual coupon payments with a coupon rate of 6.4%, and a YTM of 4.6%. How many years until these bonds mature?
4.You have decided to try to make a fortune by buying the bonds of distressed companies. You have found a C-rated bond that has a YTM of 29.6%, a coupon rate of 5.2% with semi-annual coupon payments, a par value of $1000, and 4.5 years remaining until maturity. What is the most you should be willing to pay for this bond?
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