Question
1.Assume that a corporate bond has a par value of $1,000and 7 years until it matures. This bond also has an annual coupon rate of
1.Assume that a corporate bond has a par value of $1,000and 7 years until it matures. This bond also has an annual coupon rate of 8%, but pays interest every 6months.If investors require an annual nominal rate of return of 9% (compounded semi-annually), then what should be the current price for this bond?
2. Calculate the value of a 20-year bond, with a 6.5% semi-annual coupon and selling at a yield of 5.00%.
3. Calculate the value of an 8-year bond, with a 4.75% semi-annual coupon and selling at a yield of 5.90%.
4. 15-year bond with a 5.5% semi-annual coupon is selling at a price of 105. Calculate the "current yield" of this bond.
5. A 10-year bond with a 4.75% annual coupon is selling at a price of 110. Calculate the yield to maturity for this bond
6. The bond annual coupon rate is 6%. With semi-annual coupon payments, every six months the face value of $100.00,. Given the annual rate of return 12% Calculate the price of the bond
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