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1. Yield to maturity: Ruth Jones wants to invest in 4-year bonds with a face value of $1666 that are currently priced at $??2.69. These

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1. Yield to maturity: Ruth Jones wants to invest in 4-year bonds with a face value of $1666 that are currently priced at $??2.69. These bonds have a coupon rate of 4.15 per cent and pay semiannual coupons. What is the current market yield on this bond? 2. Bond price: The International Publishing Group Pty Ltd is raising $16 million by issuing 15- year bonds with a coupon rate of 15? per cent and a face 1liralue of $1606. Coupon payments will be annual. Investors buying the bond currently will earn a yield to maturity of 16.60 per cent. At what price will the bonds sell in the marketplace? Explain. 3. Bond price: lQBE Insurance Group Ltd has outstanding bonds with a face value of $1666 that will mature in 6 years and pay an 6 per cent coupon. interest being paid semiannually. If you paid $1636.65 today. and your required rate of return was 6.6 per cent. did you pay the right price for the bond

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