E K M N 1 1. A 25-Year $1,000 Par Value Bond has an Annual Coupon Rate of 6%. If The YTM for this bond Is 8%, What is the price of this bond? 2 3 Par Value 4 Term To Maturity 5 Annual Coupon Rate 6 Annual Coupon Payment 7 Yield On Similar Bonds 8 Price Of Bond 9 10 2. Twenty years ago a firm issued a 6% annual coupon bond with a term to maturity of 25 years. If the current market interest rate on bonds 11 of this type is 5%, what is the price of this bond today? 12 13 Par Value 14 Term To Maturity 15 Annual Coupon Rate 16 Annual Coupon Payment 17 Yield On Similar Bonds 18 Price Of Bond 19 20 3. A $1,000 par value zero-coupon bond with 10 years remaining until maturity has a YTM of 4%. What is its price? 21 22 Par Value 23 Term To Maturity 24 Annual Coupon Rate 25 Annual Coupon Payment 26 Yield On Similar Bonds 27 Price Of Bond 28 29 4. A $1,000 par value bond has an annual coupon rate of 6.50% with 17 years remaining until maturity and is selling for $1,125. What is its 30 annual YTM? 31 32 Par Value 33 Term To Maturity 34 Annual Coupon Rate 35 Annual Coupon Payment 36 Price Of Bond 37 YTM 38 39 5. A 30-year $1,000 par value zero-coupon bond is selling for $250. What is its annual YTM? 40 41 Par Value 42 Term To Maturity 43 Annual Coupon Rate 44 Annual Coupon Payment 45 Price Of Bond 46 YTM 47 40