1.Iron Maiden became the first heavy-metal band to sell bonds when it arranged a $30 million deal in February 1999. The collateral on the bonds (and source of cash flow for interest and principal payments) consisted of future royalties from the band's albums like "The Number of the Beast." Each bond in the issue had a face value of $1,000, a term of 14 years and paid semiannual coupons at the rate of 5%. The yield to maturity on the bond was 9%.

At what price did each of the bonds sell? (Round to the nearest cent.)

2.With celebrity bonds, celebrities raise money by issuing bonds to investors. The royalties from sales of the music are used to pay interest and principal on the bonds. In April of 2009, EMI announced that it intended to securitize its back catalogue with the help of the Bank of Scotland. The bond was issued with a coupon rate of 6.8% and will mature on this day 36 years from now. The yield on the bond issue is currently 6.3%. At what price should this bond trade today, assuming a face value of $1,000 and annual coupons?

The price of the bond today should be ? (Round to the nearest cent.)

3.What is the price of a 3-year, 8% coupon rate, $1,000 face value bond that pays interest quarterly if the yield to maturity on similar bonds is 12.4%? (Round to the nearest cent.)

4.What is the yield to maturity of a 9.9% semiannual coupon bond with a face value of $1,000 selling for $895.39 that matures in 11 years?

The annual yield to maturity of the bond is:...?

5.Man-zeer Inc., (a Kramer/Costanza joint venture) bonds are currently trading at $1,251.88. The bonds have a face value of $1,000, a coupon rate of 5.5% with coupons paid semiannually, and they mature in 15 years.

What is the yield to maturity of the bonds? (Round to two decimal places.)

6.Cyberdyne Systems is issuing a series of zero coupon bonds to raise $500M to fund research and development at its Skynet division. Each bond will have a face value of $1,000 and will mature in 6 years. The yield on the bond is 8%.

What is the fair price for one of Cyberdyne's zero coupon bonds? (Round to the nearest cent.)