CHP 6 HW

1. A Japanese company has a bond that sells for 107.218 percent of its 100,000 par value. The bond has a coupon rate of 6.8 percent paid annually and matures in 20 years. What is the yield to maturity of this bond?

Yield to maturity

%

2. 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, 8 years to maturity, and a coupon rate of 7.5 percent paid annually. If the YTM is 9.5 percent, what is the current bond price in euros?

Current bond price

3. Ashburn Company issued 15-year bonds two years ago at a coupon rate of 8.9 percent. The bonds make semiannual payments. If these bonds currently sell for 113 percent of par value, what is the YTM?

Yield to maturity

%

4.Nikita Enterprises has bonds on the market making annual payments, with 14 years to maturity, a par value of $1,000, and selling for $967. At this price, the bonds yield 7.9 percent. What must the coupon rate be on the bonds?

Coupon rate

%