1) You are purchasing a 20 year, zero coupon bond with a face value of $1000. The yield to

maturity is 6.6% based on annual coupon payments. What is the current market price?

2) Company ABC offers a 7.5% coupon bond with annual payments and a yield to maturity of

11.12%. The bonds mature in 12 years. What is the market price of the bond if the face value is

$1,000?

3) Company XYZ has a bond issue outstanding that pays a 6.25% coupon semiannually with a

maturity of 18 years. The bonds have a par value of $1,000 and a market price of $957.20.

What is the yield to maturity?

4) Company BFM has a 6.5% coupon bond outstanding with a market price of $777.05. The

yield to maturity is 9.20% and the face value is $1,000. Interest is paid quarterly. How many

years is it until the bond matures?

5) BFM Enterprises has a semiannual coupon bond that matures in 10 years. The yield to

maturity is 6.25% and the face value is $1,000. If the bond is currently selling at 105.5% of par

value, what is the coupon rate?