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Attached are my homework problems for this week that I cannot figure out. Any help would be appreciated. Thank you. #10 Suppose the following bond
Attached are my homework problems for this week that I cannot figure out. Any help would be appreciated. Thank you.
#10 Suppose the following bond quote for IOU Corporation appears in the financial page of today's newspaper. Assume the bond has a face value of $1,000 and the current date is April 15, 2012. Company (Ticker) IOU (IOU) Coupon 6.4 Maturity Apr 15, 2028 Last Price 102.96 Last Yield ?? EST Vol (000s) 1,828 What is the yield to maturity of the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) % YTM What is the current yield? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) % Current yield #9 You purchase a bond with a coupon rate of 6.3 percent and a clean price of $895. If the next semiannual coupon payment is due in two months, what is the invoice price? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Invoice price $ #6 The real rate is 2.8 percent and the inflation rate is 4.4 percent. What rate would you expect to see on a Treasury bill? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Treasury bill rate % #4 Rhiannon Corporation has bonds on the market with 22.5 years to maturity, a YTM of 6.90 percent, and a current price of $1,057. The bonds make semiannual payments. What must the coupon rate be on these bonds? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Coupon rate % #3 Watters Umbrella Corp. issued 20-year bonds 2 years ago at a coupon rate of 8.6 percent. The bonds make semiannual payments. If these bonds currently sell for 95 percent of par value, what is the YTM? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) YTM %Step by Step Solution
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