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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
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 1,000,7 years to maturity, and a coupon rate of 7.3 percent paid annually. If the YTM is 9.3 percent, what is the current bond price in euros? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. A Japanese company has a bond that sells for 105.707 percent of its 100,000 par value. The bond has a coupon rate of 6.4 percent paid annually and matures in 24 years. What is the yield to maturity of this bond? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16 . Nikita Enterprises has bonds on the market making annual payments, with 15 years to maturity, a par value of $1,000, and selling for $971. At this price, the bonds yield 8.3 percent. What must the coupon rate be on the bonds? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. If Treasury bills are currently paying 6.05 percent and the inflation rate is 2.2 percent, what is the approximate and the exact real rate of interest? Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16
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