Chapter 7 Homework: All bonds are semi-annual. All yield measures are stated as annual percentage rates. You must show your work. 1. Suppose you buy a 20 year 6% bond that has a yield to maturity (YTM) of 7%. What is the price of the bond? 2. Suppose you buy a 30 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 7%. What is the price of the bond? 4. Suppose you buy a 30 year 7% bond that has a YTM of 8%. What is the price of the bond? 5. Suppose you buy a 6 year 9% bond that has a YTM of 8%. What is the price of the bond? 6. What is the YTM of a 5 year 8% bond that is currently selling for $1050? 7. What is the YTM of a 10 year 6% bond that is currently selling for $940? 8. What is the YTM of a 7.5 year 12% bond that is currently selling for $1100? 9. What is the yield to call (YTC) of a 30 year 6% bond selling for $940? The call deferment period for the bond is 10 years. 10. What is the yield to call (YTC) of a 20 year 8% bond selling for $1030? The call deferment period for the bond is 5 years. 11. What is the holding period yield on a 30 year 7% bond that we buy for $1050. We sell the bond in 4 years for $1090. 12. Suppose you bought a 20 year 8% bond for $1075. If you sold the bond for $980 after holding it for 2 years, what was your holding period yield?