3 4 ASSIGNMENT 5 Enter Answers Correct Answers Below Below 6 (10 Points Total) Q1) A $1,000 par value bond that pays interest annually just paid $77 in interest. What is the coupon rate? (1 point) FIRST NAME LAST NAME 7 8 Q2) A 09.30% coupon, 6-year annual bond is priced at $803. What is the current yield for this bond? (1 point) 9 10 Q3) What is the price of a $1,000 par value, semi-annual coupon bond with 5 years to maturity, a coupon rate of 05.20% and a yield-to- maturity of 06.60%? (1 point) INSTRUCTIONS 11 12 Q4) What is the price of a $1,000 par value, 7 year, annual coupon bond with a 10.20% coupon rate and a yield to maturity of 05.70%? (1 point) 13 14 When inputting an answer, round your answer to the nearest 2 decimal places. If you need to use a calculated number for further calculations, DO NOT round until after all calculations have been completed. For the final answer, Round to 2 decimal places. Q5) You bought a 12-year, 05.30% semi-annual coupon bond today and the current market rate of return is 04.60%. The bond is callable in 7 years with a $62 call premium. What price did you pay for your bond? 12 points) 15 16 17 18 Q6) A 07.00% annual coupon, 16-year bond has a yield to maturity of 03.20%. Assuming the par value is $1,000 and the YTM is expected not to change over the next year: a) what should the price of the bond be today? (1 point) b) What is bond price expected to be in one year? (1 point) c) What is the expected Capital Gains Yield for this bond? (1 point) d) What is the expected Current Yield for this bond? (1 point) 19 20