10.

The Brownstone Corporation's bonds have 6 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 8%.

1. • What is the yield to maturity at a current market price of $767? Round your answer to two decimal places. %
   • What is the yield to maturity at a current market price of $1,075? Round your answer to two decimal places. %

11. Eight years ago, Goodwynn & Wolf Incorporated sold a 29-year bond issue with a 9% annual coupon rate and a 6% call premium. Today, G&W called the bonds. The bonds originally were sold at their face value of $1,000. Compute the realized rate of return for investors who purchased the bonds when they were issued and who surrender them today in exchange for the call price. Round your answer to two decimal places.

12.

A 25-year, 8% semiannual coupon bond with a par value of $1,000 may be called in 4 years at a call price of $1,100. The bond sells for $950. (Assume that the bond has just been issued.)

• What is the bond's yield to maturity? Round your answer to two decimal places.

%

• What is the bond's current yield? Round your answer to two decimal places.
• %
• What is the bond's capital gain or loss yield? Loss should be indicated with minus sign. Round your answer to two decimal places.

%

• What is the bond's yield to call? Round your answer to two decimal places.

%

13. You just purchased a bond that matures in 15 years. The bond has a face value of $1,000 and has an 8% annual coupon. The bond has a current yield of 8.37%. What is the bond's yield to maturity? Round your answer to two decimal places.

14.

A bond that matures in 10 years sells for $1,190. The bond has a face value of $1,000 and a yield to maturity of 9.7489%. The bond pays coupons semiannually. What is the bond's current yield? Round your answer to two decimal places.

15.

Absalom Motors's 14% coupon rate, semiannual payment, $1,000 par value bonds that mature in 15 years are callable 3 years from now at a price of $1,075. The bonds sell at a price of $1,352.47, and the yield curve is flat. Assuming that interest rates in the economy are expected to remain at their current level, what is the best estimate of the nominal interest rate on new bonds? Round your answer to two decimal places.