A bond that matures in six years has a par value of $1,000, an annual coupon payment of $80, and a market interest rate of 9%. What is its price?
Years to Maturity		6
Annual Payment		$80
Par value		$1,000
Going rate, rd		9%
Value of bond =
Last year a firm issued 30-year, 8% annual coupon bonds at a par value of $1,000. (1) Suppose that one year later the going rate drops to 6%. What is the new price of the bonds, assuming that they now have 29 years to maturity?
Years to Maturity		29
Coupon rate		8%
Annual Payment		$80
Par value		$1,000
Going rate, rd		6%
Value of bond =

A bond currently sells for $850. It has an eight-year maturity, an annual coupon of $80, and a par value of $1,000. What is its yield to maturity? What is its current yield?
Years to Maturity		8
Annual Payment		$80.00
Current price		$850.00
Par value = FV		$1,000.00
Going rate, rd =YTM:
Annual Payment		$80.00
Current price		$850.00
Current yield:
A bond currently sells for $1,250. It pays a $110 annual coupon and has a 20-year maturity, but it can be called in 5 years at $1,110. What are its YTM and its YTC? Is it likely to be called if interest rates don't change?
Years to Maturity		20		Years to Call		5
Annual Payment		$110		Annual Payment		$110
Current price		$1,250		Current price		$1,250
Par value = FV		$1,000		Call price		$1,110
YTM				YTC