1-Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of 1,000, 10 years to maturity, and a coupon rate of 7.6 percent paid annually.

If the yield to maturity is 8.7 percent, what is the current price of the bond?

Price

2-

Yan Yan Corp. has a $2,000 par value bond outstanding with a coupon rate of 4.4 percent paid semiannually and 18 years to maturity. The yield to maturity on this bond is 4.7 percent.

What is the price of the bond?

Price

$

3-

Treasury bills are currently paying 7 percent and the inflation rate is 3.2 percent.

What is the approximate real rate of interest?

Approximate real rate

%

What is the exact real rate?

Exact real rate %