3.11. The WSJ lists a bond as Acme 9s13 and the price as 89.875. If your required rate of return is 10%, would you buy one of these bonds in 2001?

3.12. Bakersfield Company 8.5s26 bonds pay interest semiannually, and they are quoted in the WSJ as 90. If your required rate of return is 10%, would you buy these bonds in 2011?

3.13. You are thinking of buying IBM 6.25s20 bonds, priced at 92. The bonds pay interest semiannually. If your required rate of return is 8%, would you buy these bonds in 2011?

3.14. Napier Company has zero-coupon bonds maturing in 2018. The yield to maturity for these bonds is 9%. Find the price of one of these bonds in 2001.

3.15. Checking the Wall Street Journal in 2001, you find that the Babbitt Co. 6s21 bonds show the price as 68. The bonds pay interest semiannually. If your required rate of return for such bonds is 10%, would you buy Babbitt bonds?

3.16. The investors require 8% return on Keitel Corporation 5s2024 bonds that pay interest semiannually. Find the price of one of these bonds in 2011.

3.17. Adapazari Company 7% coupon bonds pay interest semiannually. When you bought one of these bonds, it had 11 years to maturity, and the appropriate discount rate was 9%. After one year, the discount rate on such bonds is 8% because of the improved financial health of the company. If you sell the bond today, what would be your capital gain or loss?

3.18. Zeller Co bonds are selling at $602.50 each because the bondholders' required rate of return is 15%. The bonds pay interest semiannually and they will mature after 10 years. Find the coupon rate of these bonds.

3.19. Armstrong Company bonds have 7% coupon rate, they pay interest semiannually, and they will mature after 12 years. In the bond market, these bonds are selling at $900 each. If your required rate of return is 8%, would you buy one of these bonds?

3.20. Suppose you want to buy a PP&L bond with coupon 18.75% that matures in 5 years, and pays interest semiannually. If the face value of this bond is $1,000, and your required rate of return is 12%, how much should you pay for this bond?

3.21. Athens Corporation bonds pay interest semiannually. The bonds have a coupon of 11% and they will mature after 11 years. If the investors' required rate of is return of 14%, find the market value of a $1000 bond.

3.22. Allen Corp bonds have a face value of $1,000 and coupon rate of 13.5%. They make semiannual interest payments. How much should you pay for an Allen bond if your required rate of return is 8.5% and the bond will mature after 8 years?

3.23. IBM bonds have a coupon rate of 8%, pay interest semiannually, and will mature in 8 years. What is the price of a $1,000 IBM bond if the investors have a required rate of return of 7%?

3.24. Edwards Corp 9s2018 bonds pay interest semiannually. If your required rate of return for such a bond is 11% annually, how much should you pay for a $1,000 bond in 2001?

3.25. Butler Corp 6s06 bonds pay interest semiannually and will mature on October 8, 2006. If your required rate of return is 9% per year, how much should you pay for a $1,000 bond on April 9, 2001?

3.26. Find the price of a $1000 Forster Corp bond which is going to mature in six and a half years. It pays interest semiannually; has coupon of 11%; and the bondholders have a required rate of return of 12% annually on their investment

3.27. Aquarius Waterworks bonds have 9 years until maturity and they pay interest annually. The investors require a return of 14% on these bonds and are willing to buy them at 80% of their face value. Find the coupon rate on these bonds.

3.28. A perpetual bond has face value $1,000, and coupon 8%. You bought this bond when the interest rates were 10%, and sold it when the interest rates were 12%. Find your capital gain or loss in dollars.

3.29. Meitner Corp issued zero coupon bonds in 1980 that mature in 2010. If your required rate of return is 13% on such bonds, how much would you pay for one in 1997?

3.30. Doenitz Corp issued $1000 face value, perpetual bonds in 1980 with a coupon of 8%. Find the price of one of these bonds in 1999 when the interest rate is 7%

3.31. The Northern Airlines 5s03 bonds will mature on January 15, 2003. Due to financial difficulties of the firm, the bondholders have a required rate of return of 25% on their investment. Find the price of one of these bonds on July 15, 1999

3.32. Baines Corp bonds have 6 years until maturity. The bonds have a 9% coupon, and they sell at $1075 apiece. Calculate their yield to maturity.

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