Question
1)Ghost Rider Corporation has bonds on the market with 14 years to maturity, a YTM of 6.4 percent, and a current price of $962. What
1)Ghost Rider Corporation has bonds on the market with 14 years to maturity, a YTM of 6.4 percent, and a current price of $962. What must the coupon rate be on the companys bonds? Coupon rate ---% ?
2)Atlantis Fisheries issues zero coupon bonds on the market at a price of $426 per bond. These are callable in 9 years at a call price of $660. Using semiannual compounding, what is the yield to call for these bonds?
3)Great Wall Pizzeria issued 11-year bonds one year ago at a coupon rate of 5.3 percent. If the YTM on these bonds is 8.2 percent, what is the current bond price?
4)Consider a 7.6 percent coupon bond with seven years to maturity and a current price of $1,032.20. Suppose the yield on the bond suddenly increases by 2 percent
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