Question
9- A 11-year bond pays interest of $ 28.60semiannually, has a face value of $ 1000 and is selling for $772.07. What are its annual
9- A 11-year bond pays interest of $ 28.60semiannually, has a face value of $ 1000 and is selling for $772.07. What are its annual coupon rate and yield to maturity?
13- 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 19 years. The yield on the bond is 4.5%. What is the fair price for one of Cyberdyne's zero coupon bonds?
8-Beam Inc. bonds are trading today for a price of $401.25The bond currently has 25years until maturity and has a yield to maturity of 8.21%. The bond pays annual coupons and the next coupon is due in one year. What is the coupon rate of the bond?
6-Man-zeer Inc., (a Kramer/Costanza joint venture) bonds are currently trading at $422.13 The bonds have a face value of $ 1000 a coupon rate of 11% with coupons paid semiannually, and they mature in 2020 years. What is the yield to maturity of the bonds?
7- What is the yield to maturity of a 9.2 semiannual coupon bond with a face value of $1000 selling for $860.94 that matures in 9 years.
3- 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 1717 years and paid semiannual coupons at the rate of 77%.The yield to maturity on the bond was 55%. At what price did each of the bonds sell?
5- 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 21years from now. The yield on the bond issue is currently 6.25%. At what price should this bond trade today, assuming a face value of $1,000 and annual coupons?
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