• A corporate coupon bond of 8.0 percent is callable in five years for a call premium of one year of coupon payments. Assuming a par value of $1,000, what is the price paid to the bondholder if the issuer calls the bond?
• Consider the following three bond quotes: a Treasury bond quoted at 106:26, a corporate bond quoted at 96.45, and a municipal bond quoted at 100.85. If the Treasury and corporate bonds have a par value of $1,000 and the municipal bond has a par value of $5,000, what is the price of these three bonds in dollars?
• What is the price of a 5.3 percent coupon bond with 15 years left to maturity and a market interest rate of 8.4 percent? (Assume interest payments are semiannual.)
• A 4.10 percent coupon municipal bond has 15 years left to maturity and has a price quote of 101.50. The bond can be called in eight years. The call premium is one year of coupon payments. (Assume interest payments are semiannual and a par value of $5,000.) What is the bond's current yield and the yield to maturity?