(A).

Your client is considering the purchase of a bond that is currently selling for $671.30. The client wants to know what annual rate of return can they expect to earn on the bond. The bond has 10 years to maturity, pays a coupon rate of 5.3% (payments made semi-annually), and a face value of $1000. (Round to 100th of a percent and enter your answer as a percentage, e.g., 12.34 for 12.34%)

Answer:

(B).

How much would you pay for a zero coupon bond with a par value of $1000, a maturity of 8 years, if your required rate of return is 12.0%? Assume annual discounting. (Round your answer to the nearest penny.)

Answer:

(C).

What is the market price of a bond with a maturity of 6 years, a coupon rate of 5.9% paid semi-annually, a par value of $1000, and a yield to maturity of 8.1%. (Round your answer to the nearest penny.)

Answer: