asking for question6

Bond Yields Watters Umbrella Corp. issued 15-year bonds two years ago at a coupon rate of 6.8 percent. The bonds make semiannual payments. If these bonds currently sell for 105 percent of par value, what is the YTM? Coupon Rates Hollin Corporation has bonds on the market with 12.5 years to maturity, a YTM of 7.3 percent, and a current price of $1,040. The bonds make semiannual payments. What must the coupon rate be on these bonds? 5. Valuing Bonds Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of 1,000, 23 years to maturity, and a coupon rate of 5.8 percent paid annually. If the yield to maturity is 6.9 percent, what is the current price of the bond? 6. Bond Yields A Japanese company has a bond outstanding that sells for 89 percent of its 100,000 par value. The bond has a coupon rate of 4.9 percent paid annually and matures in 18 years. What is the yield to maturity of this bond? 7. Calculating Real Rates of Return if Treasury bills are currently paying 4.1 percent and the inflation rate is 2.7 percent, what is the approximate real rate of interest? The exact real rate? 8. Inflation and Nominal Returns Suppose the real rate is 2.5 percent and the inflation rate is 3.4 percent. What rate would you expect to see on a Treasury bill? 9. Nominal and Real Returns An investment offers a total return of 11.5 percent over the coming year. Alan Wingspan thinks the total real return on this investment will be only 7.9 percent. What does Alan believe the inflation rate will be over the next year? 10. Nominal versus Real Returns Say you own an asset that had a total return last year of 12.7 percent. If the inflation rate last year was 4.2 percent, what was your real return