Question
Ackerman Co. has 7 percent coupon bonds on the market with 8 years left to maturity. The bonds make annual payments. If the bond currently
Ackerman Co. has 7 percent coupon bonds on the market with 8 years left to maturity. The bonds make annual payments. If the bond currently sells for $1063.25, what is its YTM? Answer with 4 decimals (e.g. 0.0123)
Grohl Co. issued 18 year bonds 2 years ago at a coupon rate of 7 percent. The bonds make semiannual payments. If the YTM on these bonds is 10 percent, what is the current bond price? Enter the answer with 2 decimals (e.g. 950.45)
Bond Dave has a 9 percent coupon rate, makes semiannual payments, a 6 percent YTM, and 20 years to maturity. If interest rates suddenly rise by 4 percent, what is the percentage change in the price of Bond Dave? Enter the answer with 4 decimals (e.g. 0.0123).
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