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All bonds are semi-annual. All yield measures are stated as annual percentage rates. 1. Suppose you buy a 2 year 5% bond that has a
All bonds are semi-annual. All yield measures are stated as annual percentage rates. 1. Suppose you buy a 2 year 5% bond that has a yield to maturity (YTM) of 6%. What is the price of the bond? 2. Suppose you buy a 3 year 6% bond that has a YTM of 5%. What is the price of the bond? 3. Suppose you buy a 10 year 9% bond that has a YTM of 11%. What is the price of the bond? 4. Suppose you buy a 30 year 7% bond that has a YTM of 7.5%. What is the price of the bond? 5. Suppose you buy a 6 year 12% bond that has a YTM of 9%. What is the price of the bond? 6. Suppose you buy a 30 year bond that pays a 6% coupon for the first 15 years and a 8% coupon for the last 15 years. The YTM of this bond is 7%. What is the price of the bond? 7. What is the YTM of a 5 year 8% bond that is currently selling for $1050 ? 8. What is the YTM of a 10 year 6% bond that is currently selling for $940 ? 9. What is the YTM of a 7.5 year 12% bond that is currently selling for $1100 ? 10. What is the yield to call (YTC) of a 30 year 8% bond selling for $940 ? The call deferment period for the bond is 10 years. 11. What is the yield to call (YTC) of a 20 year 9% bond selling for $1030 ? The call deferment period for the bond is 5 years. 12. What is the holding period yield on a 30 year 7% bond that we buy for $1020. We sell the bond in 4 years for $1040. 13. Suppose you bought a 10 year 8% bond for $975. If you sold the bond for $940 after holding it for 2 years, what was your holding period yield
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