A 20-year, 4% quarterly coupon, $1,000 par value bond is selling for $1,057.31 with. Find its YTM in (a) APR and (b) EAR.

Question 2:

A 10-year $1,000 par value bond pays semi-annual coupons. Each coupon payment is for $40. YTM is 8% APR, compounded semi-annually. Find the coupon rate and the bond price.

Question 3:

Exxon Mobil Corp. (rated AAA by S&P) issues an 8-year $1000 par value bond that pays semi-annual coupons. Coupon rate is 4.5%. The bond is priced at $1106.59. Find the YTM in EAR.

Question 4:

At the same time (as in question 3), Valero Corp. (rated BBB by S&P) issues a similar bond with same maturity, par value, and coupon rate. However, the coupon frequency is quarterly. The BBB-AAA spread is 2.6%.

Using the answer in Question 3 and the spread find out the YTM of this bond.